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Date – after-market close 26 October (AEDT)
Trade Twitter all sessions on MT4 & MT5 with Pepperstone
Of the 39 analysts who cover TWTR, the bulk are neutral on TWTR, with 62% having a ‘hold’ rating. We see 10 with a ‘buy’ call and 5 with a ‘sell’. The consensus 12-month price target sits at $72.09, offering 16% potential upside from current levels, with the range set at $90 to $54.
Twitter has no clear edge when it comes to overdelivering on earnings, having beaten expectations on earnings-per-share in 5 of the past 8 quarters, and 6 of the past 8 on sales.
For Q3 21 expectations, the market is looking for:
Looking ahead, traders will question how the quarterly numbers and guidance feed into consensus expectations for:
This is where the revisions will come from, which could have implications for the share price.
The market will be keen to focus on daily active users (DAU) and how they can effectively monetise that user base. Statistics around engagement could promote a reaction in the share price, as would levels of planned CAPEX.
(Source: Tradingview - Past performance is not indicative of future performance)
Twitter is holding a $68 to $58 range well at present and have seemingly found a fair value. We see price oscillating around the 20- and 50-day moving average, and the Bollinger Bands (20 MA, 2 SD) look to contain moves for now. Clearly, a downside break of $58.50 changes the dynamic and I’d be asking if this is ready to start trending lower or establish a new lower trading range. A closing break of $67.45 and $74 would be the near-term target.
Into earnings, the base case is we see the range hold. Trade the potential opportunity with Pepperstone.
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