Twitter, Inc. (NYSE:TWTR) expected to release earnings on Feb. 7
Twitter (NYSE: TWTR ) is expected to release earnings on Feb. 7, before the open. Year-to-date, Twitter stock is up about 19%. I believe that the relatively strong recent performance of the stock has been based on robust fundamentals. Last quarter, the company topped analyst estimates after which Wall Street raised revenue and earnings estimates for 2019. I expect the trend to continue in the new year, too.
With all of that in mind, here are the reasons for my optimism toward TWTR:
Twitter Stock Pros
Data Licensing is Behind the Growth: As the world’s best-known micro-blogging platform Twitter is used by politicians, journalists and global brands. Many readers see breaking global news or the opinions of famous people on TWTR first. In its October earnings release, many analysts were impressed by Twitter’s data licensing business, a significant revenue generator which produced double-digit percentage growth.
The data licensing business involves providing additional information to companies about tweets. Recently, the company has started offering cheaper data access packages to smaller companies, a move that is likely to increase its revenue further.
Wall Street now expects Twitter’s high-margin data licensing revenue to be boosted by further international expansion, as the number of overseas TWTR users are increasing, especially in the developing world. On Twitter’s Oct. 25 earnings call, it noted that its overseas revenue had jumped over 50%.
Furthermore, TWTR will be able to monetize the videos on its website more effectively as it captures a higher percentage of ad spending that is moving to digital video.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 32.13.
The projected upper bound is: 37.63.
The projected lower bound is: 30.80.
The projected closing price is: 34.21.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with TWITTER INC). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 81.9161. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 58.45. 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 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 4 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.210 at 34.160. Volume was 14% above average (neutral) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume___
35.040 35.240 33.750 34.160 5,078,154
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 33.08 32.07 34.09
Volatility: 47 69 67
Volume: 3,328,394 4,154,968 5,042,692
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 0.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into TWTR.N (mildly bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 18 periods.
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