Profit Surge: Trader Bot Generates +5.44% for $TWLO
A case in point is the recent success of bots deployed through "Swing Trader, Popular Stocks: Short Bias Strategy (TA&FA)," which garnered an impressive +5.44% gain while actively trading TWLO over the past week. In this article, we delve into the technical analysis of TWLO's recent performance, examining key indicators, earnings results, and broader market trends.
TWLO's Downward Trend Indicators:
One of the early warning signs for TWLO emerged on November 03, 2023, when the Aroon Indicator signaled a downward trend. Tickeron's A.I.dvisor identified a distinctive pattern where the AroonDown red line surpassed 70, while the AroonUp green line dipped below 30 for three consecutive days. This pattern historically suggests a strong downward move for the stock, with A.I.dvisor indicating a 90% probability of such a decline based on analysis of 199 similar instances.
Earnings Performance:
TWLO's last earnings report on November 08 revealed robust performance, with earnings per share standing at 57 cents, surpassing the estimated 37 cents. The company currently boasts 371.83K shares outstanding, contributing to a market capitalization of 11.43B. This positive earnings surprise likely played a role in the recent success of the AI trading bots.
Market Capitalization in Context:
Comparing TWLO's market capitalization to the broader Internet Software/Services Industry provides valuable context. With a current market cap of 11.43B, TWLO falls below the industry's average of 51.48B. Notable industry extremes include GOOGL with the highest valuation at 1.7T and MSEZ at the lower end with 1.11K.
Price Movements Across the Industry:
Analyzing price movements across the Internet Software/Services Industry reveals interesting insights. The average weekly, monthly, and quarterly price growth for the industry stand at 4%, 6%, and a staggering 4,464%, respectively. Within this dynamic landscape, TRVG stands out with a notable 109% price growth, while HYPPF experienced the largest fall at -67%.
Volume Dynamics:
Understanding volume dynamics is crucial for a comprehensive analysis. Across the industry, the average weekly volume growth is -11%, while monthly and quarterly figures show 11% growth and -18% decline, respectively. These contrasting trends highlight the nuanced nature of volume changes in the Internet Software/Services Industry.
Summary:
As AI trading bots continue to leave their mark on the financial markets, the success of the "Swing Trader, Popular Stocks: Short Bias Strategy (TA&FA)" bots trading TWLO exemplifies the potential for automated strategies. Traders and investors alike can benefit from staying attuned to technical indicators, earnings reports, and broader market trends to make informed decisions in this dynamic landscape.
Aroon Indicator for TWLO shows an upward move is likely
TWLO's Aroon Indicator triggered a bullish signal on October 28, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 201 similar instances where the Aroon Indicator showed a similar pattern. In of the 201 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for TWLO moved above the 200-day moving average on October 11, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TWLO advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for TWLO moved out of overbought territory on October 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where TWLO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on October 28, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on TWLO as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TWLO turned negative on October 23, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TWLO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.168) is normal, around the industry mean (10.901). P/E Ratio (0.000) is within average values for comparable stocks, (50.708). TWLO's Projected Growth (PEG Ratio) (28.154) is very high in comparison to the industry average of (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (2.756) is also within normal values, averaging (19.253).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TWLO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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General Information
a provider of cloud-based communications platform
Industry InternetSoftwareServices