Twitter, Inc. (NYSE:TWTR) Looking beyond revenue growth

Twitter, Inc. (NYSE:TWTR) Looking beyond revenue growth

Twitter, Inc. (NYSE:TWTR) Looking beyond revenue growth

Twitter ‘s (NYSE: TWTR )  declining revenue during a portion of 2017 is long forgotten now. Since returning to growth over a year ago, the social network’s top-line momentum has been not just solid, but downright impressive. The company’s revenue for the full year of 2018 was $3 billion, up from $2.4 billion in 2017.

When Twitter announces its first quarter-quarter results before the market opens on April 23, investors will get to see whether the company has kept up its strong revenue growth. Chances are, it has.

Looking beyond revenue growth

Of course, revenue growth isn’t the only important metric worth checking on when Twitter reports first-quarter results. User metrics, too, will be worth looking over.

In Twitter’s fourth quarter, monthly active users declined by 9 million year over year and 5 million sequentially as the company continued to crack down on suspicious and spammy accounts and reduced the number of email notifications sent to registered users. The company’s daily active users, however, continued to climb higher at a healthy rate of 9% year over year, in line with year-over-year growth seen for the metric in its third quarter of 2018.

In the company’s first quarter of 2019. Similar trends from monthly and daily active users are likely. As management continues to prioritize the health of its platform, monthly active users will likely take a hit. But daily active users should continue increasing due to product improvements.

Twitter will report its first-quarter results before market open on Tuesday, April 23.

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 32.94.

The projected upper bound is: 36.48.

The projected lower bound is: 32.47.

The projected closing price is: 34.47.

Candlesticks

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 25 white candles and 24 black candles for a net of 1 white candles.

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 32.7026. This is not an overbought or oversold reading. The last signal was a sell 4 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 61.20. 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 sell 4 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 34. This is not a topping or bottoming area. The last signal was a sell 4 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 -0.250 at 34.460. Volume was 36% below average (neutral) and Bollinger Bands were 36% narrower than normal.

Open High Low Close Volume___
34.870 34.890 34.240 34.460 2,347,630

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

Moving Averages: 10-period 50-period 200-period
Close: 34.64 32.19 32.98
Volatility: 17 40 65
Volume: 2,287,026 3,256,509 4,214,279

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 4.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 20 periods.

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