Financial analyst and StockTwits co-founder Howard Lindzon has reacted to the Meta Platforms Inc. (NASDAQ:FB)-led plunge in social-media stocks on Wednesday by saying he was “amazed” at how undervalued Twitter Inc. (NASADQ:TWTR) was.
What Happened: Lindzon tweeted on Wednesday that, while he believes there is no such thing as value investing in a digital world, Twitter is undervalued. He added he owns some shares in the social media company.
I am not a value investor...
— Crashy (@howardlindzon) February 3, 2022
There is no such thing as value investing in a digital world...
BUT
Twitter is so undervalued.
Just amazing.
$twtr
( I own a few shares)
He also provided some advice to Twitter by sharing details of what he called an “emergency plan” for the company.
Twitter emergency plan -
— Crashy (@howardlindzon) February 3, 2022
Put an 800 number on front page - 2k month 24 hour support for public company execs and hedge funds, fire 4000 people and be 50 billion valuation overnight.
Further, Lindzon said that Snap Inc. (NYSE:SNAP) — the parent company of Snapchat — will be another member of the “Great Roundtrip" on Thursday morning and predicted that the company’s market capitalization will fall to $50 billion.
I see $SNAP at $50 billion...which as of tomorrow AM is another member of 'The Great Roundtrip' and don't see the same 'value' https://t.co/yuoY8K671I pic.twitter.com/idydlUcJL7
— Crashy (@howardlindzon) February 3, 2022
See Also: How To Buy Twitter (TWTR) Stock
Why It Matters: “The GreatRoundtrip” is a term coined by Lindzon for the stocks that have round tripped in valuations, while user growth has been sticky in the growth era from May 2020 until January this year.
The poster stocks in the era include Robinhood Markets Inc. (NASDAQ:HOOD) and GameStop Corp. (NYSE:GME), among others, as per Lindzon.
These companies have enjoyed high user growth as tech companies benefited from the COVID-19 pandemic that drove people online.
Stocks of social media companies including Twitter and Snap fell on Wednesday after Meta Platforms — formerly known as Facebook — reported fourth-quarter earnings that missed analysts’ estimates.
Price Action: Twitter shares closed 4.2% lower in Wednesday’s regular session at $36.51 and fell almost 8% in the after-hours session to $33.60.
Snap shares fell 4.7% in the regular session to $32.07 and tumbled 16.9% in the after-hours session to $26.64.
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