Here’s a perfect example of why small investors don’t trust the markets.
On Monday, Twitter’s shares — which are down more than 26% this year alone and 66% over the last 52 weeks — popped 7% on no news. Tuesday morning, news breaks that the micro-blogging site has won a deal to stream the NFL’s Thursday night games. The stock is up 4.5% in early pre-market after the news hit, of course, on Twitter.
Now, I don’t believe this will turn around Twitter’s fortunes alone, since the service is not known as a video streaming service, but nonetheless, the Securities and Exchange Commission should take a look at Monday’s trading.
The volume Monday on Twitter’s stock was more than 275% higher than the average trading day. A lot of people knew something that the average investor did not.
Well I guess I’ll just tweet about it.