TWTR, FB, LNKD all down this week

Well, it's exciting times in the tech sector. (more on that later) Of course the most pertinent for us is the social networks and specifically Twitter which dropped 25% from over $52 to $38; missing revenue and lower outlook has a way of doing that to a growth stock.

In fact, all 3 publicly traded socials, FB, LNKD, and TWTR took a haircut this week, due to bad revenue numbers. (I actually managed to sell FB at $84 before the drop but that was just dumb luck than any skill or insight).

They are all having trouble monetizing (read advertising) effectively on all the eyeballs hanging on their web and mobile sites. This is a good opportunity for my company Sysomos which helps them with social advertising, but they are stupidly stubborn in reaching out and working with 3rd party indies (like us); instead trying to do everything in-house.

I think we're at an inflection point in the social industry. It's been a "land grab" mentality thus far, trying to attract as many users to their networks at all costs, but now that they have all saturated their user base, they need to get smart and serious about monetizing.

So in the short term, there is some headwinds/negative sentiment in the market so these stocks will be under pressure. If you can't stand the heat, I suggest we cut our losses. If I have to give a range, I think Twitter may drop into the low $30s but in the longer term it goes over $100 in the next 3 years.

The only problem with selling right now is I don't know where to deploy this cash.