Twitter, Inc. (NYSE:TWTR) beat estimates on earnings for the third quarter

Twitter, Inc. (NYSE:TWTR) beat estimates on earnings for the third quarter

Twitter, Inc. (NYSE:TWTR) beat estimates on earnings for the third quarter

Twitter shares surged more than 17 percent Thursday after the company reported higher-than-expected earnings and revenue for the third quarter. It closed up 15.47 percent.

Twitter reported:

Earnings per share of 21 cents (adjusted) vs. 14 cents expected by analysts surveyed by Refinitiv
Revenue: $758 million vs $702.6 million, according to the survey
Monthly active users (MAUs): 326 million vs. 330.1 million projected by FactSet and StreetAccount
“We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service,” CEO Jack Dorsey said in the earnings release. “We’re doing a better job detecting and removing spammy and suspicious accounts at sign-up. We’re also continuing to introduce improvements that make it easier for people to follow events, topics and interests on Twitter, like adding support for U.S. TV shows in our new event infrastructure. This quarter’s strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation.”

In September, Dorsey testified alongside Facebook COO Sheryl Sandberg before the Senate Intelligence Committee regarding foreign meddling during the 2016 U.S. election. The company has also faced claims it participates in “shadow banning,” or making sure certain accounts don’t show up in search results. Twitter had strongly denied those reports. Dorsey did admit the company contributes to “filter bubbles,” where people only see opinions from one perspective, and vowed to fix that issue.

The company has recently purged a network of bots and other abusive accounts on its platform, including a suspected bot pro-Saudi government network and more accounts affiliated with Infowars founder and conspiracy theorist Alex Jones. Twitter also said it found more than 10 million posts that may have been backed by the Iranian and Russian governments, which it had previously said were sources of spreading misinformation.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 34.83.

The projected lower bound is: 28.74.

The projected closing price is: 31.79.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.3776. This is not an overbought or oversold reading. The last signal was a sell 4 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 60.19. 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 buy 27 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 255.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 21 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 4.260 at 31.800. Volume was 141% above average (neutral) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
31.350 33.660 30.760 31.800 11,666,283

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 29.14 30.55 33.20
Volatility: 94 65 71
Volume: 5,369,874 4,461,863 5,600,200

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.

Summary

TWITTER INC gapped up today (bullish) 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 4.2% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 3 periods.

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