Today In The Market | EnteroMedics (ETRM), Ariad Pharmaceuticals (ARIA), Baxalta (BXLT), Twitter (TWTR), Facebook (FB)

EnteroMedics Study Data Excites Investors

EnteroMedics Inc (NASDAQ: ETRM)

EnteroMedics is having a great day in the market today as investors are focused on the an analyses of the company’s ReCharge Study. The analyses demonstrated Excess Weight Loss of 34% and improvement in obesity-related risk factors associated with vBloc. While the data hit the media yesterday, the market declines hindered growth. However, the stock is up today. Currently (2:29), ETRM is trading at $0.29 per share after a gain of 8.46% so far today.

Investors Are Losing Hope In An ARIA Acquistion

Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA) | Baxalta Inc (NYSE: BXLT)

Ariad Pharmaceuticals had a big climb last week after announcing a conversation with Baxalta for a possible acquisition. However, as time passes, it seems as though we’re getting further and further from the possible acquisition. The reality is that the original deal offered by Baxalta came with a premium that’s far less than the average in the industry. All in all, it seems like the companies are too far off with regard to expectations from ARIA and BXLT’s willingness to pay. However, I’m no psychic. Ultimately, only time will tell what happens next. Nonetheless, in my opinion, it’s not looking good at the moment.

Twitter Is Exciting Investors: I Still See No Reason To Invest!

Twitter Inc (NYSE: TWTR)

Twitter is a source of excitement for investors today as the company announced their plans for ad expansion. However, I’m not convinced at the moment. The reality is that while ads may grow revenue in the short run, without user growth, the company is going to have a hard time seeing long term growth. With that said, if you plan on jumping on this one, please be cautious. TWTR hasn’t produced GAAP earnings… EVER. The company is going through a big management shift, and things are just too up in the air to expect to see solid growth at the moment.

Facebook: A Victim Of Its Own Success

Facebook, Inc. (NASDAQ: FB)

Finally, Facebook is a stock that draws quite a bit of attention; and for good reason. The company has created the largest social network in the world. However, they also have a sky high valuation. Considering the overall market saturation FB has achieved, expecting momentous growth is becoming harder and harder to do, and with the valuation where it is now, you would have to expect momentous growth to invest. So, this is another stock to move with caution on.

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