On November 7, 2013, the first day of trading on the NYSE, Twitter shares opened at $26.00. Twitter investors were in seventh heaven on December 26th, 2013 when the stock reached as high as $74.68 per share. But what went wrong? The chart below shows our forecast since November 4th, 2014, when Twitter was trading near $42.
As visible, the Elliott Wave Principle suggested we should expect wave (Y) to the south to take Twitter back to the IPO price level or even lower. If you have been following this stock, you know how things went. Less than two weeks ago, on August 7th, 2015, prices fell to $26.84. Here is how Twitter looks like now.
This is a great example of the Wave principle’s ability to help you make long-term predictions, without having to take any future news and events into consideration. So, what went wrong with Twitter? Nothing. It was simply the market’s natural behavior, which is, to a degree, predictable, if one knows what to look for.
Now, Twitter’s (W)-(X)-(Y) correction seems to be approaching its end. Once wave C of (Y) is over, we could prepare for a significant recovery.