Twitter’s (NYSE:TWTR) Fake Accounts, How Many Are There?
Twitter shares tumbled Monday on concerns the social media’s efforts to crack down on fake accounts would affect its user base, and potentially its finances.
At 1810 GMT, shares of the social media company were down 6.0 percent at $43.89 after earlier shedding almost 10 percent.
The decline follows a report late Friday in the Washington Post that described how Twitter’s greater scrutiny of user data had resulted in more than 70 million account suspensions in May and June.
The efforts are a response to criticism that social media companies have done too little to confront the spread of disinformation and fake news.
CFRA analyst Scott Kessler on Monday downgraded Twitter to “sell” from “hold,” citing the Washington Post article, which raised concerns about its official active user count and “about potential negative impacts on pricing and revenue.”
Twitter shares are “overvalued,” Kessler added.
Shares of the company rallied somewhat from session lows after chief financial officer Ned Segal said most of the accounts removed were not in the company’s official metrics since they were not on the platform for at least 30 days.
He said the company would provide user numbers when it reports earnings on July 27.
“This article reflects us getting better at improving the health of the service,” Segal said in a post that included the Post article. “Look forward to talking more on our earnings call July 27!”
The impact on Twitter’s user base was unclear. Twitter said last week it had “identified and challenged more than 9.9 million potentially spammy or automated accounts per week,” up from 6.4 million in December 2017.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 47.48.
The projected lower bound is: 41.36.
The projected closing price is: 44.42.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with TWITTER INC). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 72.2646. This is not an overbought or oversold reading. The last signal was a sell 13 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 55.17. 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 -49. This is not a topping or bottoming area. The last signal was a sell 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 down -2.510 at 44.140. Volume was 163% above average (trending) and Bollinger Bands were 41% narrower than normal.
Open High Low Close Volume___
46.890 46.900 42.080 44.140 15,763,212
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 44.59 38.17 28.36
Volatility: 60 48 63
Volume: 5,242,592 6,413,664 5,278,884
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 55.6% above its 200-period moving average and is in an upward trend. Volatility is 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 46 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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