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Twitter, Inc. (NYSE:TWTR) Retracts Earnings Forecasts Amid Coronavirus Pandemic

Twitter, Inc. (NYSE:TWTR) Retracts Earnings Forecasts Amid Coronavirus Pandemic

Twitter on Monday withdrew its revenue and operating income forecasts for the first quarter of 2020 amid the coronavirus pandemic.

The social media giant also retracted its outlook for expenses, stock-based compensation, headcount and capital expenditures for the full fiscal year “due to the growing impact of COVID-19 on the global operating and economic environment and their effect on advertiser demand.”

Twitter said the near-term financial impact of the virus outbreak on its bottom line was “rapidly evolving and difficult to measure.” But the company added that its first-quarter revenue will be “down slightly on a year-over-year basis,” and that it will post an overall GAAP operating loss.

The company’s CFO Ned Segal noted that Twitter had a strong start to fiscal 2020, “before the effects of COVID-19 began spreading more broadly, including a successful Super Bowl and overall strength in the U.S.”

He added, “The COVID-19 impact began in Asia, and as it unfolded into a global pandemic, it has impacted Twitter’s advertising revenue globally more significantly in the last few weeks.”

The revised guidance from Twitter follows the social media giant striking a truce with activist investor Elliott Management that includes tech investor Silver Lake taking a $1 billion stake in Twitter and co-founder and CEO Jack Dorsey remaining at the helm.

Twitter also inked a cooperation agreement with Elliott Management that will see Silver Lake’s investment, together with cash on hand, fund a $2 billion share repurchase program.

Stock in Twitter traded down by 48 cents, or 2 percent, to $24.21 in after-hours trading on Monday. The company expects to release its first-quarter earnings on April 30.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 31.72.

The projected upper bound is: 29.47.

The projected lower bound is: 19.57.

The projected closing price is: 24.52.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black 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 54.0644. This is not an overbought or oversold reading. The last signal was a buy 2 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 36.71. 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 2 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 -67. This is not a topping or bottoming area. The last signal was a buy 1 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 19 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.740 at 24.690. Volume was 6% above average (neutral) and Bollinger Bands were 222% wider than normal.

Open     High      Low     Close     Volume___
23.790 25.230 23.500 24.690 4,200,612
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26.50 33.15 35.75
Volatility: 188 104 68
Volume: 5,791,866 4,772,310 3,368,585

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 30.9% below its 200-period moving average and is in an downward 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 moderate flows of volume out of TWTR.N (mildly bearish). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 16 periods.

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