This is a tough situation for investors no doubt. Whatever you decide to do, don’t let your emotions make your decision. It’s just no way to invest. And to be clear, I’m checking myself on that same front all the time, especially today where headlines are telling us that all hope is gone.
I’ve been as big a Twitter advocate from the investor’s perspective as anyone. I love the platform and all of its potential. But it’s not been a good investment. Some of you have asked what action I’m taking, if any. I own Twitter shares and my cost basis is $23 per share. I imagine my perspective is quite different from someone who has a cost basis of $45, but that’s investing and we all know price always matters. Much as it matters to any potential suitors. I have no intentions of selling any shares. I don’t need the money right now and I’ve consistently said that the 3rd and 4th quarters of this year would tell me all I need to know about where this business was headed. Either the live streaming initiative helps lead the way forward or it doesn’t.
Based on what we’ve heard it sounds like management would like to have a deal done by the time they announce results toward the end of this month, but who knows. I certainly don’t; I’m only going on what I’ve read. And if for some reason all of this acquisition talk turns out to be a total sham, well then I’ll reassess. But I’ll likely stick with my initial plan of giving the business the final two quarters of the year to see how it has been able to take advantage of the opportunities 2016 has presented.
Keep calm and hit ‘em with the Hein.