Twitter stock: buy or sell?
Updated on:
Nov 24th, 2020
2
Twitter stock brief
- Twitter stock slightly moved 0.65% to close at $45.23 on the stock market today, after 6 consecutive sessions in red.
- The stock is configuring an uptrend pattern since last March, when it bottomed at $20.00. This uptrend marked a 126.15% gain
- Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States and internationally.
Should I buy Twitter stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $TWTR stock a buy?
In the current situation of Twitter there is just one buy setup eligible:
Uptrend buy setup
Twitter stock is in an uptrend since last March that so far marked a gorgeous 126.00% gain. Price marked a local bottom in this uptrend at $38.93 on November 2, and since then it bounced off a 16.18%. Breaking out above $52.93 - it's last top - will be a good entry point if Twitter resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $47.64
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $52.93 | $47.64 | 10.00% |
Should I sell Twitter stock?
"To sell or not to sell", if you are holding Twitter stock?. Like when we have to buy shares, deciding when is the best time to sell is not a whimsy decision, and we must follow our own trading strategy. We like very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups should not be used for selling short Twitter stock
As a rule of thumb, you should not hold a trading operation that generates greater losses than those expected at the time of the buy. When to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Twitter stock?
In the current situation of Twitter there is not any eligible sell setup, so Twitter stock holders with operations in profit can keep their positions
Twitter ratings
In the last month, 12 analyst ratings were published for Twitter
| Brokerage firm | Rating |
|---|---|
| Oct 26th, 2020 | |
| Mizuho | Buy → Neutral |
| Wedbush | Neutral |
| Oct 27th, 2020 | |
| Bank of America | Neutral |
| JPMorgan Chase & Co. | |
| Oct 28th, 2020 | |
| Stifel Nicolaus | Neutral |
| Oct 30th, 2020 | |
| Barclays | Sell |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Oppenheimer | Buy |
| Pivotal Research | |
| Nov 2nd, 2020 | |
| Canaccord Genuity | Neutral |
| Smith Barney Citigroup | Neutral |
| Nov 11th, 2020 | |
| Morgan Stanley | |
Twitter stock analysis
Since last March, Twitter has been drawing an uptrend that so far marked a gorgeous 126.15%. The price shows higher highs and higher troughs, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was on November 2, when price bounced at $38.93. Like in all uptrends, price needs to rest and now price is moving in a range between $52.93 and $38.93
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Relative strength index
The RSI dropped below the overbought level of 70 in late October after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Tuesday was 53.21. Twitter price dropped a 10.33% since RSI lost the overbought zone
Twitter stock price history
Twitter started trading priced at an adjusted price1 of $45.10 on Nov 2013. Since then, TWTR stock has risen by 0.29%, with an average of 0.04% per year. An investment of thousand dollars on Nov 2013 would have a value of $1,002.88 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Twitter stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts published by brokerage institutions in the last 30 days. If you are a small trader you don't have to invest based on these price targets.
There are 12 price forecasts published for Twitter that average $49.25. That is a 8.89% more than the current price ($45.23).
| Brokerage firm | Price target |
|---|---|
| Oct 26th, 2020 | |
| Mizuho | $40.00 → $45.00 |
| Wedbush | $37.50 → $47.00 |
| Oct 27th, 2020 | |
| Bank of America | $52.00 → $58.00 |
| JPMorgan Chase & Co. | $39.00 → $52.00 |
| Oct 28th, 2020 | |
| Stifel Nicolaus | $33.00 → $39.00 |
| Oct 30th, 2020 | |
| Barclays | $30.00 → $36.00 |
| Deutsche Bank Aktiengesellschaft | $56.00 → $64.00 |
| Oppenheimer | $46.00 → $55.00 |
| Pivotal Research | $59.75 → $64.00 |
| Nov 2nd, 2020 | |
| Canaccord Genuity | $52.00 → $47.00 |
| Smith Barney Citigroup | $36.00 → $42.00 |
| Nov 11th, 2020 | |
| Morgan Stanley | $39.00 → $42.00 |
Earnings and financials
In late October, Twitter, Inc. ($TWTR) reported adjusted EPS for fiscal third-quarter that significantly improved analysts' expectations. Quarterly EPS was $0.19 per share from an estimated $0.06. This Q3 report means an earnings surprise of 216.67%. Company's revenue was $936.2 million versus $777.2 million estimated by market consensus.
Compared to the same quarter one year ago, EPS was $0.17, so current EPS is a increase of 11.76%. Looking at revenue, figures skyrocketed a 13.66% compared to $8.2B same quarter last year.Twitter ($TWTR) is posting quarterly financial report next February. Forecasted EPS for this quarter is $0.29, compared to $0.19 that was reported for Q3.
Twitter competitors
Twitter is part of the Internet Content & Information industry, which contain 38 industry peers.
The following are Twitter most relevant competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Twitter ($TWTR) | $34.3B | Neutral | 2 |
| Google ($GOOG) | $1.2T | | 12 |
| Google ($GOOGL) | $1.2T | Buy | 9 |
| Facebook ($FB) | $783.3B | Buy | 12 |
| Snap ($SNAP) | $57.3B | | 2 |
| Spotify ($SPOT) | $49.3B | Buy | 2 |
| Twilio ($TWLO) | $47.9B | Buy | 6 |
1 In the last 30 days.
Twitter performance
To better understand Twitter performance you must compare its gains with other related stocks in same sector or industry.. For Twitter, the benchmark is made against Google, Google, Facebook, Snap, Spotify and Twilio.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Twitter ($TWTR) | -8.60% | 10.40% | 43.30% |
| Google ($GOOG) | 10.90% | 7.00% | 24.80% |
| Google ($GOOGL) | 11.00% | 7.10% | 24.20% |
| Facebook ($FB) | -5.20% | -5.50% | 19.70% |
| Snap ($SNAP) | 6.60% | 106.00% | 142.20% |
| Spotify ($SPOT) | -5.80% | -3.20% | 50.80% |
| Twilio ($TWLO) | -1.90% | 10.20% | 47.80% |
Disclaimer:
The thoughts published in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the specific positions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for educative motives onlyTwitter summary
| Tuesday, November 24th, 2020 | |
|---|---|
| Open | $45.13 |
| Close | $45.23 |
| Day range | $44.46 - $45.44 |
| Previous close | $44.94 |
| Session gain | 0.65% |
| Average true range | $1.61 |
| 50d mov avg | $44.86 |
| 100d mov avg | $41.34 |
| 200d mov avg | $35.93 |
| Earnings date | February 4th, 2021 |