Twitter Inc (NYSE:TWTR) Doesn’t Want To Be Unfairly Compared To Facebook

Twitter Inc (NYSE:TWTR) Doesn’t Want To Be Unfairly Compared To Facebook

Twitter Inc (NYSE:TWTR) Doesn’t Want To Be Unfairly Compared To Facebook

  • The Securities and Exchange Commission has asked Twitter Inc. a question that many investors also have: why not disclose your number of daily active users?
  • Twitter reports the number of monthly active users, which stood at 328 million for two quarters. The company tells investors to focus instead on the percentage growth of people who use it daily, which has increased more than 10 percent in each of the last three quarters. But Twitter doesn’t say what that percentage represents.
  • In a May 10 letter, the SEC asked for Twitter to explain that choice, and “tell us how the percentage change information provides an investor with a clear understanding of user engagement on your platform.”
  • In the company’s lengthy response, it argued that showing growth was more important than showing the number. In fact, Twitter said, showing the number of DAUs would invite unfair comparison to Facebook, which calculates its number including people who use its separate Facebook messaging application. “Investors would not be able to compare performance between the Company and this other company,” San Francisco-based Twitter wrote. Facebook has six times the number of monthly users as Twitter.

Twitter, Inc. offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser. Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user’s timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis. Its MoPub is a mobile-focused advertising exchange. Twitter Audience Platform is an advertising offering.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 17.77.

The projected lower bound is: 14.79.

The projected closing price is: 16.28.

TWITTER INC closed up 0.110 at 16.320. Volume was 100% below average (consolidating) and Bollinger Bands were 101% wider than normal.

Open         High         Low           Close        Volume
16.320      16.320      16.320      16.320      2,735

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period          50-period       200-period
Close:                       18.24                 18.10                17.22
Volatility:                89                      53                      47
Volume:                   26,565,316      17,894,790      19,317,390

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 is currently 5.2% below its 200-period moving average and is in an downward 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.K at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.K and have had this outlook for the last 2 periods.

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 8.0120. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 31.16. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 sell 4 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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