Financial Trading Blog
Stock of the day 21/07/2016 – Twitter Inc
The company kicked off the New Year in the same way as it ended the old one: with a sharp decline. From an opening price of $22.40 Twitter had fallen all the way to an intraday low of $12.85 by the middle of February, an all-time nadir for the stock. A recovery in the latter half of February then saw the stock trading between $16 and $18 for March and most of April, before earnings-related woes left it hovering just above $14 for most of May. Since then Twitter has, like many US stocks, been on a near-uninterrupted rise, climbing back to a current trading price, and 4 and a half month high, of $18.60 (IT-Finance.com, 21/07/2016).
Unsurprisingly Twitter’s subdued stock price has been due to the persistently disappointing nature of its quarterly releases. While it beat Q4 expectations with earnings per share of 16 cents alongside $710 million in revenue back in February, news that monthly active users had fallen from 307 million to 305 million quarter-on-quarter helped send the stock to its aforementioned all-time low.
Things were hardly any better at the end of April, with its first quarter report causing a near 21% fall across 6 straight trading sessions as it beat EPS and monthly active user growth estimates but missed Q2 guidance projections. Twitter stated that it expects revenue between $590 million and $610 million in the second quarter, far lower than the $678 million forecast.
In terms of Twitter’s Q2 performance analysts are expecting the company to post revenue of $608 million, a 21% rise year-on-year alongside, more importantly, a 1% rise in monthly active users to 308 million (lower than the 310 million users seen in Q1).
Twitter Inc has a consensus rating of ‘Hold’ with an average target price of $20.68.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
