Twitter Inc (NYSE:TWTR)’s move from the $38 levels, where its latest quarterly results was declared, till current $50 levels has brought it into radar of many investors. While other tech majors spent the better part of the last two weeks being in news for all the right and wrong reasons, Twitter Inc (NYSE:TWTR)’s stock quietly climbed up more than 10% during the same period.  Some people are not bothered about the unreasonable valuation of the stock as they believe the growth potential of the company more than justifies its current stock price. One among them is FMHR trader Stephanie Link, who recently bought Twitter Inc (NYSE:TWTR)’s stock. Today on CNBC, she explained her reasoning behind buying the stock.

John Borthwick, Twitter, is Twitter a good stock to buy, Facebook, is Facebook a good stock to buy,

“We own Google, we own Facebook and I kind of like owning a package of kind of like high tech, fast growing companies. Clearly this is one of them, right? Twitter Inc (NYSE:TWTR) growing a 124% in revenues last quarter, the fourth quarter in a row of acceleration, but it was really the engagement numbers. The engagement numbers were better than expected in the quarter and I think monetization as a result will improve going forward […],” Link said.

Link feels that the most important factor that will affect Twitter Inc (NYSE:TWTR)’s price will be the margins, which she believes will continue to improve in the future. She accepts that the current valuation of  Twitter Inc (NYSE:TWTR) can be considered overvalued going by its present financial performance, but, according to her, the kind of growth potential that Twitter Inc (NYSE:TWTR) has, makes it lucrative.

Link revealed the she started buying Twitter Inc (NYSE:TWTR)’s shares last week for the Jim Cramer’s Charitable Trust, which she manages along with Jim Cramer, and will continue to buy it on weakness.

As of June 30, 2014, John Thaler‘s JAT Capital Management owns over 7.4 million shares of Twitter Inc (NYSE:TWTR).

Disclosure: None

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