Tomorrow is a big day for the social media industry. Tomorrow we get to see how the market reacts to our first Twitter earnings announcement. Twitter will be joined by special guests YELP! Together the pair makes up a big piece of the social media space.
We have absolutely no way of knowing how the market will react to this news. We do know that up unto this point TWTR has behaved almost exactly the opposite of FB during the first three months of public trade.
Facebook pretty much bottomed after their first call. Will Twitter pretty much top?
It deserves a consideration. On the eve of what promises to be a special day for the market, I have decided to raise some cash and buy popcorn rations. I want to be a casual observer of the action, not a red eyed madman trading the fallout. I want to instead casually observe the action and pick a spot to pounce and eat.
Social media is the ultimate disrupter. Solid state lighting and eCigs and reefer and big, but social media is HUGE. Thus we must continue to find ways to profit from it.
I still hold my $40 cost basis shares in Twitter, and these $57.50 February calls in Facebook. I sold out of the YELP calls for a handsome gain.
With these actions my book is now 30% cash. Cash rich, if you will, and resisting my junky urges to get another fix.
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