Twitter, Inc. (NYSE:TWTR) Investors impressed by the social network’s strong growth in revenue and users
Shares of Twitter (NYSE: TWTR ) soared last week , following its second-quarter update. Investors were impressed by the social network’s strong growth in revenue and users. Daily active user growth was particularly impressive, as the key user metric saw a 14% year-over-year increase — an acceleration from 11% growth in Q1.
While the headline metrics from the earnings release were notable, you can learn more about Twitter’s recent performance and initiatives in the company’s second-quarter conference call . Here’s a look at some key takeaways from the call.
Twitter’s top priority
Management said that improving the health of conversation on Twitter remains the company’s top priority.
During Q2, Twitter’s health efforts focused on identifying and addressing malicious activity and making its rules easier to understand. Ongoing health initiatives are impacting costs. Operating expenses in Q2 increased 20% year over year — faster than Twitter’s 18% revenue growth. Management said expenses related to its health initiatives were one of the key drivers of this growth.
But management also believes that its investments in health are helping drive business growth. When asked by one analyst whether investments in health have gone from weighing on user growth to driving growth, Twitter CEO Jack Dorsey responded:
As we’ve talked about on this call before, we do believe that health is a long-term growth factor for us, and we have been doubling our efforts to make sure that we can address all the issues that we’re seeing on the service.
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 36.89.
The projected upper bound is: 43.63.
The projected lower bound is: 38.51.
The projected closing price is: 41.07.
A black body occurred (because prices closed lower 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 22 white candles and 28 black candles for a net of 6 black candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 80.9371. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 66.62. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 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 147.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 19 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.500 at 41.000. Volume was 18% above average (neutral) and Bollinger Bands were 26% wider than normal.
Open High Low Close Volume___
41.010 41.710 40.820 41.000 3,413,125
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 38.85 37.06 33.95
Volatility: 57 43 58
Volume: 3,305,682 2,664,244 3,617,842
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 20.8% above 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 17 periods.