×

Twitter is about to mark a historic milestone

Twitter shares are doing something unusual this year — they are going up.

In every full calendar year since the social media company's initial public offering in November 2013, the stock has posted double-digit losses. This year, Twitter is up nearly 29 percent year to date, on pace for its best full year on record.

The stock posted gains in the first two months it was public, in late 2013.

The stock was down in Wednesday trading amid a broader tech sell-off. Still, some traders are optimistic about the technical picture.

On a weekly chart of Twitter, the stock has made a class double-bottom formation over the course of the last two years, said Craig Johnson, chief market technician at Piper Jaffray.

"The next resistance for this stock is going to be about $25. That's the level that we need to watch. A break through $25 is going to set this stock up for a whole other leg higher, and we should be buying it based on this double-bottom pattern setting up here right now. So, I'd be a buying of this stock here, definitely for a trade up to $25, and then look for a stronger move after $25," Johnson said Tuesday on CNBC's "Trading Nation."

Others are less optimistic about the stock's direction.

"I'm incredibly conflicted about the stock because I think it's the great social media platform out there, yet one that is frustratingly difficult to monetize," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.

Facebook has not been able to deter users from Twitter in the way it has from Snap's social media platform, Snapchat, Schlossberg said. Still, Twitter's business model has not been successfully monetized, he said.

"Until you [monetize Twitter], it's hard to make a fundamental case for Twitter. I think the reason you're seeing so much price action is because the market is probably betting that a bigger player — perhaps Google, perhaps somebody else — is going to come in and put them inside their fold," he said.

The stock is still trading below its IPO price of $26 per share and was lower on Wednesday, trading at $20.98.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

Videos

Trades to Watch

Trader Bios

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

Read more

Connect