Twitter, Inc. (NYSE:TWTR) Looks Like a Strong Buy
Shares of Twitter TWTR jumped over 4% Monday morning as part of a broader tech stock resurgence, including Apple AAPL and Amazon AMZN . Twitter stock is also still up nearly 50% over the last year and many of its current fundamentals appear strong. So, let’s see why Twitter stock seems like a strong buy right now.
Twitter, along with Facebook FB has faced increased scrutiny over its handling of “fake news” and the spread of misinformation on its platform. With that said, Twitter and the much larger Facebook are likely to remain vital social media outlets for the foreseeable future. Plus, Twitter and its ability to instantly disseminate news and stream live video will only become more attractive to advertisers as non-ad supported platforms such as Netflix NFLX expand.
Last quarter, Twitter’s adjusted Q3 earnings soared 110% to reach $0.21 per share. This not only topped our Zacks Consensus Estimate of $0.14 but also marked the fourth straight quarter that Jack Dorsey’s company posted GAAP profitability. Meanwhile, Twitter’s quarterly revenues climbed 29%.
Twitter also saw its daily active user base jump 9% even though the company actively started to rid its platform of fake accounts. On top of that, Twitter’s total ad engagements surged 50% and cost per engagement sunk 14%. These two metrics could be signs that the company is headed in the right direction since advertising accounted to 86% of quarterly revenues.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 35.97.
The projected lower bound is: 29.78.
The projected closing price is: 32.87.
A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 white candles.
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 46.2385. This is not an overbought or oversold reading. The last signal was a sell 15 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 53.34. 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 48 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 -36. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 9 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 1.700 at 32.820. Volume was 26% above average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
31.630 32.860 31.520 32.820 5,879,746
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 32.28 30.65 34.03
Volatility: 64 66 68
Volume: 3,652,496 4,740,189 5,279,893
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 3.6% below 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 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 24 periods.
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