Twitter shares recorded their best daily performance in seven months yesterday, as the companys first-quarter earnings outstripped market expectations, driven by a strong active monthly user growth.
Twitter shares registered their largest daily surge since September 23rd 2016 during Wednesdays trading session. The stock went up 7.91% ($1.16) to $15.82, after touching an intraday high at $16.48, or a price level not seen since February 22nd ($16.51). In the week ended on April 23rd the shares of the social media company added 2.31% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on February 19th. The stock has neutralized earlier losses and is now up 5.82% so far during the current month, following a 5.20% drop in March. The latter has been a second consecutive month of losses. For the entire past year, Twitter shares plummeted 29.56%.
The company earned $0.11 per share in Q1 2017, according to an April 26th report, down from $0.15 during the same period a year ago. In comparison, market consensus had pointed to earnings of $0.01 per share.
Total revenue was reported to have shrunk to $548 million during the first quarter of 2017 from $594.5 million during the same period a year earlier. In comparison, the median estimate by analysts had pointed to a sharper drop in revenue – to $511.9 million.
At the same time, the number of active monthly users grew to 328 million in Q1 from 319 million in the preceding quarter and also far exceeding market expectations.
“Were proud to report accelerating growth in daily active usage for the fourth consecutive quarter, up 14 percent year-over-year”, Jack Dorsey, the companys Chief Executive, said, cited by Investing.com.
Twitter now expects that its second-quarter earnings to be within the range between $95 million and $115 million, a projection which fell short of the median analyst forecast ($141 million).
According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Twitter’s stock price, have a median target of $14.00, with a high estimate of $25.00 and a low estimate of $10.00. The median estimate is an 11.50% decrease compared to the closing price of $15.82 on April 26th.
The same media also reported that 21 out of 38 surveyed investment analysts had rated Twitter’s stock as “Hold”, while 11 – as “Sell”. On the other hand, 4 analysts had recommended buying the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Twitter stock are presented as follows:
R1 – $15.89
R2 – $15.95
R3 (Range Resistance – Sell) – $16.02
R4 (Long Breakout) – $16.22
R5 (Breakout Target 1) – $16.45
R6 (Breakout Target 2) – $16.54
S1 – $15.75
S2 – $15.69
S3 (Range Support – Buy) – $15.62
S4 (Short Breakout) – $15.42
S5 (Breakout Target 1) – $15.19
S6 (Breakout Target 2) – $15.10
By using the traditional method of calculation, the weekly levels of importance for Twitter Inc (TWTR) are presented as follows:
Central Pivot Point – $14.51
R1 – $14.91
R2 – $15.18
R3 – $15.58
R4 – $15.97
S1 – $14.24
S2 – $13.84
S3 – $13.57
S4 – $13.29