Investors are aflutter over Twitter.
The stock surged to an all-time high Thursday, a rare bright spot in a down market, after the company announced lofty revenue goals.
Twitter expects to increase its user base to 315 million daily active users and double its yearly revenue by the end of 2023. The social media company is also considering a feature that will allow users to pay for subscriptions to their favorite Twitter accounts, a model it has dubbed Super Follows.
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After the surge, traders are growing wary.
"The problem is, on a technical basis, it's also getting incredibly overbought," Matt Maley, chief market strategist at Miller Tabak, told CNBC's "Trading Nation" on Thursday.
Maley noted that the last time the stock's relative strength index moved this high, it suffered a correction. Its RSI, a momentum measure, was this overbought in mid-2018, a peak that preceded a roughly 40% stock decline in less than six months.
"If you really like this one and believe what they're saying, [I'd] let it come back to you, I think it's going to see a pretty decent pullback before too long," said Maley.
Money Report
Nancy Tengler, chief investment officer at Laffer Tengler Investments, expressed similar concerns.
"We own the stock, we've been selling stock for the past few months and weeks," she said during the same interview. "I think a lot of the good news is already reflected in the price of a stock."
While it might not be the time to buy, Tengler agreed with Maley that there could be a better opportunity in the future.
"I think you get a better entry point soon, and then you might want to dip your toe back in," said Tengler.
The shares are up 38% this year, outpacing Facebook, Snap and Pinterest.
Disclosure: Laffer Tengler Investments holds TWTR.
