Twitter, Inc. (NYSE:TWTR) to expect third-quarter revenue between $815 million and $875 million

Twitter, Inc. (NYSE:TWTR) to expect third-quarter revenue between $815 million and $875 million

Twitter, Inc. (NYSE:TWTR) to expect third-quarter revenue between $815 million and $875 million

Shares of Twitter (NYSE: TWTR) climbed 21.2% in July, according to data from S&P Global Market Intelligence, after the short-form social networking site delivered stronger-than-expected second-quarter results.

To be sure, after drifting higher early in the month leading up to its July 26 earnings release, Twitter stock soared 8.9% after its results hit the wires. When all was said and done in Q2, revenue had increased 18% year over year to $841 million, translating to net income of $0.20 per share after adjusting for one-time items. The top and bottom lines easily outpaced consensus estimates at the time for adjusted earnings of $0.19 per share on revenue of $829 million.

So what

CEO Jack Dorsey emphasized the company’s work to improve the health of its platform: “Our focus was on ensuring that our rules, and how we enforce them, are easy to understand. We also continued our work to proactively identify and address malicious behavior, resulting in an 18% drop in reports of spammy or suspicious behavior across all Tweet detail pages, which show the replies to any given Tweet on our service.”

Twitter also highlighted its continued use of machine learning to improve the relevance of content seen by users. In turn, the company saw its average monetizable daily active users grow 14% year over year — accelerating from 11% in the first quarter — to 139 million.

Now what

Twitter also told investors to expect third-quarter revenue between $815 million and $875 million, the midpoint of which is modestly slower 11% year-over-year growth and technically falls below consensus estimates for $869 million. Partly to blame for that soft outlook, according to management, was the company’s decision to deprecate some older legacy ad formats to better serve customers.

Of course, it’s hard to blame Twitter for working to keep its advertising client base happy. And given its relative outperformance in the second quarter, at least judging by last month’s rally, it seems the market was more than willing to forgive the move.

Technical Indicators

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 38.02.

The projected upper bound is: 43.34.

The projected lower bound is: 37.98.

The projected closing price is: 40.66.

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 25 white candles and 25 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 22.2402. This is not an overbought or oversold reading. The last signal was a sell 12 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 52.79. 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 9 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 -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 5 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.490 at 40.580. Volume was 38% below average (neutral) and Bollinger Bands were 8% wider than normal.

Open     High      Low     Close     Volume___
40.450 40.649 40.120 40.580 1,834,557
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 41.06 38.24 34.72
Volatility: 50 43 55
Volume: 2,838,038 2,789,005 3,439,927

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 16.9% above its 200-period moving average and is in an upward trend. Volatility is high 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 30 periods.

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