$TWTR Will The Twitter IPO Crash The Market?

We've covered market crashes numerous times here at optionmillionaires.com.

https://www.optionmillionaires.com/stock-market-ready-crash/

https://www.optionmillionaires.com/heisenberg-indicator-still-shining/

The market continues to do what we thought it would with the massive global manipulation of asset prices. Each pullback has been a great buying opportunity.

https://www.optionmillionaires.com/add-government-shut-list-great-buy-dip-opportunities/

But what about Twitter?  Everyone seems hellbent on finding a top to the market. When will the rally stop? When will this Fed-induced bubble pop? Will the Twitter IPO finally open everyone's eyes to the ridiculous bubble-like valuations being put on stocks in this market?

Well, as it turns out, the same thing was being said about a different stock back in the spring of 2012. $FB was going to be the IPO that would sink the markets. $FB IPO'd to much fanfare and then the stock endured a tumultuous run, dropping over 50% below its IPO price. Barron's even said it was a $14 stock.

Today, $FB trades at $49 and the market is trading at much higher levels than it was during the $FB IPO.

fbipo

It's true that $TWTR has yet to post a profit. However, its growth is unquestioned and its full potential yet untapped. Does it deserve a $14 billion market cap? Will the Twitter IPO remove the rose-colored glasses from the faces of market participants? Myself, I think the market will use the Twitter IPO as an excuse to pull back. But longer term, and if you use $FB as a comparison; the market will trade at higher prices down the road. So the answer is "No, the $TWTR IPO will not crash the market." Go find another excuse.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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