Twitter announces positive results after the market closes
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%
With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Twitter and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
