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Is It Time To Book Profits In Twitter Inc (TWTR) Stock?

Twitter Inc (NYSE:TWTR) stock is approaching $20 levels. Should you take some profits off the table now?

Shares of San Francisco, California-based Twitter Inc (NYSE:TWTR) have had a great run lately. After a bad start to the year, the micro blogging platform has given investors something to cheer about, with its shares gaining by close to 18% in the last one month alone. That takes the stock's return over three months to a staggering 37% plus, which brings us to the important question - is it time to book profits yet? We think the answer is 'yes'. Here's why investors would do well to book profits, at least partially.

For starters, TWTR stock has simply run up too much. While there have been a few positives emerging for the social media company in recent times, valuations aren't necessarily cheap enough to justify such a big rally. Twitter's bull run began when the company reported better than expected user addition during Q1. This has triggered a lot of optimism around the stock, with some analysts calling this the turning point for Twitter. Meanwhile, Twitter has signed a slew of live video streaming deals, which have raised expectations.

This was further aided by bullish commentary from the likes of Cleveland Research, a boutique equity research firm. Cleveland Research said, "it sees indications that Twitter's advertisers and partners are encouraged by user growth on the site, along with changes in ad delivery and progress in Live content." The firm...