Twitter (TWTR)... A Dead Bird Bounce
You've probably heard of a dead cat bounce, but have you ever heard of a dead bird bounce? Look at the chart of Twitter (NYSE: TWTR) today to see one in action.
Trading down as much as 7% earlier despite rumors in the market that Rupert Murdoch's News Corp was buying a stake, shares notably strengthen at the time when the market was at its weakest. Share momentum continued with the stock moving up as much as 14% before fading part of the move. Shares are now trading up 5% to $17.58 with a day range of $15.48-$19.04.
The rumors is unlikely the reason for the rally (it has also now been denied). The reason for the rally is likely an activist or other hedge fund began an aggressive accumulation of the stock on the washout... at least that's what the action points to.
As StreetInsider said earlier this month, the company is ripe for an activist investor that could push the company into a sale.
