Twitter stock: buy or sell?

TWTR stock price: $45.23 0.65% At close on Nov 24th, 2020

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 setupBuy pointStop lossRisk
Uptrend buy setup$52.93$47.6410.00%

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

Twitter analysts' ratings - Last month
Brokerage firmRating
Oct 26th, 2020
Mizuho BuyNeutral
Wedbush Neutral
Oct 27th, 2020
Bank of America Neutral
JPMorgan Chase & Co. Strong buyNeutral
Oct 28th, 2020
Stifel Nicolaus Neutral
Oct 30th, 2020
Barclays Sell
Deutsche Bank Aktiengesellschaft Neutral
Oppenheimer Buy
Pivotal Research Strong buy
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

TWTR stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $45.86 (1.39% above)
  • R2: $47.79 (5.66% above)
  • R3: $52.93 (17.02% above)
  • The current supports are:

  • S1: $44.09 (-2.52% below)
  • S2: $43.48 (-3.87% below)
  • S3: $40.92 (-9.53% below)
  • Bollinger bands

    TWTR stock Bollinger Bands chart

    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

    TWTR stock RSI chart

    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

    TWTR stock price history chart

    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).

    Twitter stock price predictions
    Brokerage firmPrice 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:

    Twitter competitors
    CompanyMarket capRatingBullish ratings1
    Twitter ($TWTR) $34.3B Neutral 2
    Google ($GOOG) $1.2T Strong buy 12
    Google ($GOOGL) $1.2T Buy 9
    Facebook ($FB) $783.3B Buy 12
    Snap ($SNAP) $57.3B Strong buy 2
    Spotify ($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.

    TWTR performance compared
    Company1m3m6m
    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 only

    Twitter summary

    Tuesday, November 24th, 2020
    Open$45.13
    Close$45.23
    Day range$44.46 - $45.44
    Previous close$44.94
    Session gain0.65%
    Average true range$1.61
    50d mov avg$44.86
    100d mov avg$41.34
    200d mov avg$35.93
    Earnings dateFebruary 4th, 2021

    Frequently asked questions

    What is Twitter stock symbol?

    Twitter, Inc. is a public company trading in the US stock market with the TWTR symbol

    Is Twitter stock a buy or sell?

    Twitter received 12 ratings in the last 30 days: 2 bullish, 1 bearish and 8 neutral.

    Will TWTR go up?

    Twitter had different price forecasts issued by market analysts in the last month setting the target price to $49.25. That is a 8.89% higher than the current price ($45.23).