Twitter announces positive results after the market closes

February 10, 2021 14:00

Twitter’s earnings results were announced yesterday, surprising the markets. In recent months, the social network has been involved in different controversies and accusations of censorship related to the suspensions of user accounts such as former President Donald Trump.

These accusations led to sharp falls and high volatility since January, although they finally managed to rebuild and continue their longer-term upward trend.

The results were very positive, far exceeding market expectations, such that after the market closed, the stock posted a 3.09% increase after having risen 2.92% during the day, and is expected that both today's pre-opening and trading day will be positive.

Earnings per share grew by $0.38 along with income of $1.29 billion, compared to $0.29 per share and $1.18 billion expected by analysts.

A negative point raised within these results is that the increase in users was lower than expected. Twitter announced an increase of 27% but warns that growth may slow down in the coming months.

Technically speaking, after the sharp falls at the beginning of the pandemic, the price has followed a marked bullish channel that has led it to overcome various resistances, exceeding the level of $60 per share, reaching levels not seen since 2014.

The latest rises have led the price to the upper band of the bullish channel, this being its current resistance level, so we will have to see if the price is able to overcome this level or if, on the contrary, it will bounce down to continue within this formation.

Although the upward trend seems clear, the price is currently very far from its support levels (56 dollars per share, moving average of 18 black sessions and low band of the channel) that together with the overbought that we can observe in its Stochastic indicator, cannot make us rule out the possibility of a possible reversal in the short/medium term to subsequently continue with its upward trend, although all this will depend on how the price behaves after these results in its current resistance zone.

Source: Admiral Markets MetaTrader 5. Daily Twitter graph Data range: October 17, 2019 to February 10, 2021. Prepared on February 10, 2021 at 11:20 am CET. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 69%
  • 2019: 11.5%
  • 2018: 19.7%
  • 2017: 47.3%
  • 2016: -29.5%

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