Twitter, Inc. (NYSE:TWTR) Analyst predicts soft second quarter financial results
Twitter, Inc. (TWTR) shares fell about 4% during Thursday’s session after MoffettNathanson analyst Michael Nathanson lowered his price target from $28.00 to $25.00 per share. The analyst cited a combination of slowing revenue growth and rising cost growth as catalysts for a weak second quarter financial report in late July.
The lower price target comes about a month after the company’s first quarter financial results, where it showed year-over-year monetizable daily user grow returning to the double digits for the first time since the second quarter of 2018. On its conference call, Twitter management also reiterated that the social media network remains focused on removing abusing content.
The company also announced that it is continuing to launch new innovations through its “twttr” prototype app, which enables Twitter to try out new ideas outside of its public network, gain feedback from testers, and develop new features based on what it learns. In particular, the new app is focused on testing new designs for conversations, and advertisers have responded positively to the results.
From a technical standpoint, the stock broke down from the 50-day moving average following the analyst commentary. The relative strength index (RSI) moved slightly lower to neutral levels of 44.20, while the moving average convergence divergence (MACD) continues to trend sideways. These indicators provide few hints of where the stock could be headed, but the falling wedge pattern suggests a bearish outlook.
Traders should watch for a move to trendline support at around $35.35 or the 200-day moving average at $32.89. If the stock breaks down from those levels, it could retest prior lows of around $29.50 made back in March. If the stock rebounds from these support levels, traders should watch for a move toward trendline resistance at around $38.30.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 39.58.
The projected lower bound is: 33.20.
The projected closing price is: 36.39.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.1046. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.18. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -56. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -1.150 at 36.340. Volume was 31% above average (neutral) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume___
36.800 36.800 35.760 36.340 4,234,296
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 36.65 37.06 32.89
Volatility: 55 55 60
Volume: 2,708,718 3,014,736 3,881,611
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TWITTER INC gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TWITTER INC is currently 10.5% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 18 periods.