Twitter’s Aftermath

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HotForex Market Review
HotForex Market Review

Twitter was the last social media company reporting its Q4 earnings. Twitter stock price fell more than 3% following its earnings announcement despite beating Wall Street expectations.

The company reported overall revenue of $909 million the fourth quarter from $868.2 million projected, posting a 24% increase from last year’s reading due to th growth in its advertising business. Earnings per share spiked to $0.31, exceeding consensus estimates of $0.25 from a Reuters poll with 32 out of 39 analysts having a hold to Buy recommendation.

Into US open today, the stock drifted further by more than 9% since yesterday’s close,  at $30.42, while it remains up, nearly 10% year to date. The strong fourth quarter results however came in contrasts to stock price decline to 1-month lows. The decline was a result of lower than expected number of users, however the main mover of this move was company’s forecasts for the first quarter of 2019 revenue.

According to Twitter inc. there would be a decline to the total revenue for Q1 2019, down to $715-$775 million, while the operating expenses and the spending on safety and security would continue increasing this year as it moved to protect the integrity of its platform. This raised Investor’s concerns regarding company’s profits for 2019.

Turning to the technical side, Twitter stock price is currently trading below all 3 daily moving averages with immediate Support at November’s Support, at $29.80. However real support for the asset come at the bottom of the 6 month sideways channel, at 26.25-26.40 area.

The daily momentum indicators present the decline of positive bias for the asset in the near future. The daily RSI crossed 50 zone today, whilst MACD lines clutched in the positive territory unable to present a clear direction yet. Hourly indicators however are negatively configured suggesting further decline for the rest of the day.

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Andria Pichidi

Market Analyst

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