MARKETS: YF Premium Investment Idea: Twitter (TWTR)

Yahoo Finance's Jared Blikre breaks down some of the features of the Yahoo Finance Premium package.

Video Transcript

ADAM SHAPIRO: Like you were trying to make sense of this market action right now, with the Dow off more than 200 points, Blikre is gonna help us try and make sense of it all, Jared.

JARED BLIKRE: Yeah, kind of a mixed market here. We see the Dow off 85 points. The NASDAQ is up 8/10 of a percent. Tech doing very well today, as his communication services, that includes Facebook and Google. And here's the S&P 500 down 12 basis points, relatively unchanged.

And here is the day's price action-- well, actually this is year-to-date. But I want to check out the last two days price action, and this is what we're seeing in here today. And really, kind of inside the range of the last five days.

Now we do have what some are considering a short here, but if shorts get chased out, probably going up to 3,000, which is somewhere up here. So we want to watch this level here, just above 2,890, at the S&P 500.

Now we're also taking a look at the semiconductors. Those are outperforming today, doing pretty well, and the VIX is down to 32, again. And we could see hasn't been able to crack 30, that's a level down here. Just kind of hovering down there. If we do manage to break the low there, are probably concurrent with a material rise higher in equity prices. But if we bounce here, like we've been doing, probably going to head down in stocks.

Here's a 10-year T-note yield, and that is up today, up six basis points, as a pretty, heavy increase for the 10-year T-note yield. Haven't seen a move like that in a while.

Nevertheless, financials and energy are just underperforming today, so that's a little bit unusual. But I do want to get to a Yahoo Finance Premium idea, and this is for Twitter. And this comes from Argus research, and this is a fundamental take, they are raising their long term target to 40. And we can see this on a year to date chart, here.

If I can pull this up. Here we go. Here is the 40 level, and if you're looking to protect your money here, and you're just getting it on Twitter, probably want to place it underneath this $20 level, give it a little room to work.

Now here's what Argus is saying about Twitter, that they like their strong user growth, but weakening ad revenue. And actually where they're saying that, over time, we can expect advertising spending to catch up with user growth, but we see this as a durable outcome of the pandemic.

So that's our premium placement of the day, Adam.

ADAM SHAPIRO: Jared, thank you, very much.