Twitter stock: buy or sell
Updated on:
Jan 21st, 2021
2
Twitter stock brief
- Twitter closed on Wednesday at $47.60 after exploding a 3.64%.
- The stock is configuring an uptrend pattern since March 2020, when it bottomed at $20.00. This uptrend marked a 138.00% gain
- Piper Sandler published a neutral rating for Twitter on Wednesday
- Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States and internationally.
Should I buy Twitter stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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 in March 2020 that so far marked an amazing 138.00% gain. Price marked a pull back in this uptrend at $44.40 on Tuesday, and since then it bounced off a 7.21%. Breaking out over $56.11 - 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 $50.50
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $56.11 | $50.50 | 10.00% |
Should I sell Twitter stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making rash decisions based on our personal feelings or the buzz that surrounds the market. Our trading system selects very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies should not be used for selling short Twitter stock
As a golden rule, you should not keep a trading operation that leads to greater losses than those expected by the time of the buy. The timing to sell shares always has to be ruled 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 green can keep their positions
Twitter ratings
In the last month, 5 ratings were published for Twitter
| Brokerage firm | Rating |
|---|---|
| Jan 5th, 2021 | |
| Morgan Stanley | |
| Jan 8th, 2021 | |
| Robert W. Baird | Neutral |
| Jan 12th, 2021 | |
| Rosenblatt Securities | Buy → Neutral |
| Jan 13th, 2021 | |
| MKM Partners | Neutral → |
| Jan 20th, 2021 | |
| Piper Sandler | Neutral |
Twitter stock analysis
Twitter stock started an uptrend in March 2020, and grew a gorgeous 138.00%. The price shows higher highs and higher lows, and along the way gave some entry points for those who wanted to invest. Latest pullback was on Tuesday, when price bounced at $44.40. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $56.11 and $44.40
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Since the price broke down the lower band last Friday, the price has bounced up by 5.59%
Relative strength index
The RSI broke out the oversold level of 30 on Tuesday after just being in the oversold zone for just one day (what can be considered a strength sign). The RSI value on Wednesday was 40.82
Twitter stock price history
Twitter went public priced at an adjusted price1 of $45.10 on Nov 2013. Since then, TWTR stock has risen by 5.54%, with an average of 0.79% per year. An investment of thousand dollars on Nov 2013 would have a value of $1,055.43 today.
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. Banks and financial organisations post their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, financial institutions publish their price predictions based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and usually. If you are a small investor you must not invest based on these projections.
There are 4 price predictions released for Twitter that average $51.75. Twitter closed at $47.60 on Wednesday, so the target price is expecting a growth by 8.72%.
| Brokerage firm | Price target |
|---|---|
| Jan 5th, 2021 | |
| Morgan Stanley | $42.00 → $50.00 |
| Jan 8th, 2021 | |
| Robert W. Baird | $39.00 → $58.00 |
| Jan 12th, 2021 | |
| Rosenblatt Securities | $40.00 → $39.00 |
| Jan 13th, 2021 | |
| MKM Partners | $47.00 → $60.00 |
| Jan 20th, 2021 | |
| Piper Sandler | Not available |
Earnings and financials
Twitter, Inc. ($TWTR) released earnings of $0.19 per share last October, highly enhancing the Wall St consensus estimate of $0.06 per share. This Q3 report represents an earnings surprise of 216.67%. Forecasted revenue was $777.2 million but Twitter strongly improved by 20.47%, posting $936.2 million.
In contrast, the EPS for the same quarter last year was $0.17, so reported EPS is a improvement of 11.76%. Revenue skyrocketed a 13.66% on an annualized basis in the , from $8.2B to $9.4B last quarter.Twitter ($TWTR) is hosting the earnings call next Thursday. Wall Street expects of $0.30, compared to previous quarter that made $0.19.
Twitter competitors
Twitter is part of the Internet Content & Information industry, which contain industry peers.
Twitter biggest competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Twitter ($TWTR) | $37.6B | Buy | 1 |
| Microsoft ($MSFT) | $1.6T | | 2 |
| Google ($GOOGL) | $1.2T | Buy | 3 |
| Facebook ($FB) | $760.8B | Buy | 4 |
| TripAdvisor (TRIP) | $4.5B | Neutral | 0 |
| Sina (SINA) | $2.5B | Neutral | 0 |
| Leaf (LEAF) | $169.6M | | 1 |
1 In the last 30 days.
Twitter performance
To better understand Twitter performance you must compare its gains with other related stocks in same sector or industry.. For Twitter, the benchmark is made against Microsoft, Google, Facebook, TripAdvisor, Sina and Leaf.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Twitter ($TWTR) | -13.30% | 4.50% | 28.80% |
| Microsoft ($MSFT) | -1.60% | -1.50% | 1.80% |
| Google ($GOOGL) | 7.70% | 23.40% | 20.80% |
| Facebook ($FB) | -3.00% | 1.70% | 11.30% |
| TripAdvisor (TRIP) | 25.80% | 73.90% | 68.00% |
| Sina (SINA) | -2.40% | -1.90% | 3.00% |
| Leaf (LEAF) | 19.20% | -16.30% | 41.50% |
Disclaimer:
The comments given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not know the particular conditions of the reader, his or her 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 education reasons onlyTwitter summary
| Wednesday, January 20th, 2021 | |
|---|---|
| Open | $46.23 |
| Close | $47.6 |
| Day range | $46.18 - $47.92 |
| Previous close | $45.93 |
| Session gain | 3.64% |
| Average true range | $2.44 |
| 50d mov avg | $48.76 |
| 100d mov avg | $46.35 |
| 200d mov avg | $39.62 |
| Earnings date | February 4th, 2021 |