If you’ve been eyeing up Twitter (NYSE:TWTR) you soon may get your chance to buy Twitter stock.

The broader markets have performed better in November than they did in October. Although the S&P 500 is still down month-to-date, it is rapidly approaching November highs thanks to dovish commentary from formerly hawkish Fed Chair Jerome Powell, which eased investor concerns that an aggressive rate hike agenda could kill already weakening U.S. economic growth.

Yet, despite the recent strength in markets, one stock that has been left out of the rally is TWTR. The social media giant had a surprisingly good October, with the stock rising more than 20% against the backdrop of the S&P 500 which fell 7%. But, this trend has reversed course in November. The S&P 500 is essentially flat month-to-date. Twitter stock is down 10% over that same stretch.

Why the recent weakness? Three factors:

• One, TWTR got ahead of itself rallying more than 20% in October, and it’s now normalizing lower.
• Two, rate hikes aren’t the big risk for Twitter, regulation is. While the rate hike risk has been mitigated, the regulation risk has not.
• Three, Fox News hasn’t tweeted since Nov. 8 in a move that is widely considered a boycott and could result in user churn.

As such, the near term outlook for Twitter stock has deteriorated in November. But, none of this deterioration is anything to worry about long term. And, the stock has fallen to valuation levels which are both attractive and historically supportive of a bounce. Thus, now looks like a good time to swoop in and buy the dip.

Near Term Outlook Has Worsened

Twitter stock had a really good October despite plunging markets because the company reported strong third quarter numbers which affirmed that the advertising business continues to gain momentum and margins continue to track higher. But, Twitter stock has since given up some of those gains because the near term outlook post-earnings has worsened.

After Q3 earnings, TWTR jumped from $27 to $35 in a hurry. At $35, though, the forward multiple had jumped to above 40. In 2018, Twitter has been valued at over 40 forward earnings three times. Each time, the valuation was unsustainable, and the stock eventually retreated off those highs. We are getting a similar valuation retreat in November 2018.

Moreover, while market sentiment has improved meaningfully ever since a dovish speech from Fed Chair Powell, that improvement doesn’t apply everywhere. Specifically, it doesn’t apply to stocks whose biggest risk wasn’t an aggressive rate hike cycle.

Twitter falls in that category. The biggest risk affecting this company isn’t higher rates, but rather tighter regulation. The last check on that risk remains unfavorable.

To make matters worse, Fox News has apparently decided to boycott Twitter. Perhaps due to thinking that Twitter over-promoted liberal content over conservative content, or in attempt to promote its own Fox Nation service, Fox News hasn’t tweeted since Nov. 8.

That’s a pretty big deal. The Fox News Twitter page has more than 18 million followers, and the company used to tweet multiple times a day. In a worst case scenario, the sudden and prolonged silence from Fox News could result in some user churn.

Because of this near term deceleration in Twitter’s growth narrative, Twitter stock has been weak in November against an otherwise decent market backdrop. But, this weakness won’t last forever.

The Stock Is Attractive on the Dip

The aforementioned risks to Twitter stock are either already clearing up or not that big of a deal in the big picture.

On the valuation front, Twitter has fallen back to below 40 forward earnings. Now, the stock is closing in on $30. That level has provided a fairly strong level of support throughout 2018. The stock tested the ~$30 level in March, April, July, and September, and it largely held ever single time.

The same should be true this time around, considering the company’s most recent earnings report affirms positive business trends (accelerating digital advertising growth in the 20%-plus range, and healthy margin expansion to adjusted EBITDA levels of 40%).

Meanwhile, regulation risks will continue to hang over the entire digital ad industry. But, these risks have seemingly hung over this industry for several years now, and yet nothing materially and permanently negative has happened to these companies as far as legislation is concerned. As such, regulation risks seem grossly overstated.

With respect to Fox News, this is a big Twitter account with a lot of clout. Prolonged silence is not a good thing. But, the average Twitter user follows hundreds of accounts. Reasonably speaking, then, users won’t quit the platform because one account stopped posting. If the Fox News boycott spreads, then Twitter has a serious problem. But, right now, this problem seems contained.

As such, with the risks that dragged TWTR stock down now starting to improve, this dip looks like a good opportunity to buy. My conviction in this dip-buying thesis is backed by my calculation that this stock’s fair value today also hovers around $30.

Bottom Line on Twitter Stock

Twitter stock is a solid growth company with an improving margin profile. Long term fundamentals support this stock at $30, and nothing about the risks that have arisen in November change the long term fundamentals.

As such, recent weakness in Twitter looks like yet another opportunity to buy the dip.

As of this writing, Luke Lango was long TWTR.