Twitter, Inc. (NYSE:TWTR) earnings and revenue topped fourth-quarter estimates but stock fell

Twitter, Inc. (NYSE:TWTR) earnings and revenue topped fourth-quarter estimates but stock fell

Twitter, Inc. (NYSE:TWTR) earnings and revenue topped fourth-quarter estimates but stock fell

Twitter earnings and revenue topped fourth-quarter estimates, though the social site gave somewhat cautious revenue guidance. Twitter stock fell.

Twitter (TWTR) earned 31 cents a share adjusted as revenue grew 24% to $909 million. Wall Street expected adjusted Twitter earnings of 25 cents on revenue of $868 million. Monthly average users were 321 million, meeting estimates.

For the first quarter, Twitter sees revenue at $715 million to $775 million, with the $745 million midpoint below analysts’ $765 million forecast. Twitter also sees expenses rising 20% in 2019.

“Management’s guidance suggests higher levels of platform investment amid a slowdown in revenue growth,” Baird analyst Colin Sebastian said in a note to clients.

Twitter stock sank 9.8% and closed at 30.80 on the stock market today.

Advertising revenue totaled $791 million, up 23% from the year-ago period and above analyst views for $756.8 million.

The company reported monthly active users of 321 million vs. expectations of 321.4 million and down 1.5% from the previous quarter.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 32.10.

The projected upper bound is: 34.49.

The projected lower bound is: 27.10.

The projected closing price is: 30.79.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 30 white candles and 20 black candles for a net of 10 white 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 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 45.6790. This is not an overbought or oversold reading. The last signal was a sell 0 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 43.46. 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 29 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 0 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 0 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -3.360 at 30.800. Volume was 135% above average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
31.080 31.730 30.310 30.800 10,660,137

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

Moving Averages: 10-period 50-period 200-period
Close: 32.99 32.07 34.08
Volatility: 79 75 68
Volume: 4,175,294 4,341,492 5,066,143

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 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 9.6% 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 19 periods.

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