Twitter, Inc. (NYSE:TWTR) company just posted its third straight quarter of higher revenue growth
Twitter (NYSE:TWTR) might have lost more users in the third quarter, but those sticking around are significantly more valuable.
Although monthly active users declined last quarter due to the company’s ongoing work to improve the health of its platform, Twitter saw an increase in daily users of 9% year over year. That growth was still outpaced by the company’s 29% year-over-year revenue growth, which was better than anticipated.
This represents the third straight quarter revenue growth outpaced daily active user growth. When asked whether that’s sustainable on the earnings call, Twitter’s CFO Ned Segal said he expects that trend to continue.
There are three main factors driving revenue growth to be faster than user growth at Twitter, and as long as those factors remain true, investors should expect strong revenue growth compared to user growth.
Taking advantage of its opportunities will be key to continuing the trend of strong revenue growth compared to user growth for Twitter. It will lap the biggest impact of its health works sometime next year, at which point it will need to show strong execution on continued improvements in user monetization.
Twitter’s challenges with spam and malicious accounts don’t make it easy to get an idea of how valuable its real users are or how fast the user base is actually growing. So, the metric isn’t nearly as valuable as watching the company’s top-line growth. And Twitter has shown substantial progress on that front so far this year.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 35.40.
The projected lower bound is: 29.30.
The projected closing price is: 32.35.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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 62.5280. This is not an overbought or oversold reading. The last signal was a sell 5 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 62.00. 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 28 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 195.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 22 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.560 at 32.360. Volume was 84% above average (neutral) and Bollinger Bands were 40% narrower than normal.
Open High Low Close Volume___
31.200 33.130 30.950 32.360 9,000,984
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 29.58 30.54 33.24
Volatility: 93 65 71
Volume: 5,678,544 4,578,948 5,633,225
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 is currently 2.6% 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 4 periods.