Twitter (TWTR, $69.59) crushes Q2 earnings expectations
Twitter shares climbed in after-hours trading Thursday, following better-than-expected second-quarter results.
The social media behemoth’s adjusted diluted earnings came in at 35 cents a share, handily beating analysts’ expectations of 7 cents. Net income was 8 cents a share, bouncing back from loss of - $1.75 per share a year ago.
Revenue increased +74% from the year-ago quarter to $1.19 billion compared to analyst consensus of $1.07 billion.
The platform’s average monetizable daily active users in the second quarter was 206 million - up +11% year-over-year and +3% quarter-over-quarter.
For the third quarter, Twitter is expecting revenue to range between $1.22 billion and $1.3 billion . It projects GAAP operating income between a loss of -$50 million and break even.
For the full year, the company expects stock-based compensation expense of about $600 million and capital expenditures between $900 million and $950 million.
TWTR in downward trend: price dove below 50-day moving average on May 13, 2022
TWTR moved below its 50-day Moving Average on May 13, 2022 date and that indicates a change from an upward trend to a downward trend. In 23 of 32 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 72%.
Current price $40.70 crossed the support line at $71.22 and is trading between $71.22 support and $5.68 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -8% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -18%.
The Momentum Indicator moved below the 0 level on May 09, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on TWTR as a result. In 57 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for TWTR turned negative on April 27, 2022. 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 37 similar instances when the indicator turned negative. In 25 of the 37 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TWTR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The RSI Indicator entered the oversold zone -- be on the watch for TWTR's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where TWTR advanced for three days, in 286 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
TWTR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 199 of 262 cases where TWTR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 57%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.09.
The Tickeron SMR rating for this company is 88 (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 74 (best 1 - 100 worst) indicates that the company is slightly 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 (5.269) is normal, around the industry mean (17.641). TWTR has a moderately high P/E Ratio (163.934) as compared to the industry average of (50.361). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.062). Dividend Yield (0.000) settles around the average of (0.021) among similar stocks. P/S Ratio (6.161) is also within normal values, averaging (96.541).
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. TWTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 46 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 18 (best 1 - 100 worst), pointing to outstanding 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.
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
The average market capitalization across the Internet Software/Services Industry is 37.8B. The market cap for tickers in the group ranges from 1.1K to 1.5T. GOOG holds the highest valuation in this group at 1.5T. The lowest valued company is MSEZ at 1.1K.
The average weekly price growth across all stocks in the Internet Software/Services Industry was -3.92%. For the same Industry, the average monthly price growth was -12.83%, and the average quarterly price growth was -5.71%. NIROF experienced the highest price growth at 58.84%, while PRSNF experienced the biggest fall at -38.8%.
- 5/12/22 5:38 AM: Twitter (TWTR, $46.09) was a top loser this week, declining -6.05%. Expect a Downtrend reversal
- 4/12/22 7:12 AM: Twitter (TWTR, $47.01) was a top loser this week, declining -5.92%
- 3/18/22 7:14 AM: Twitter (TWTR, $37.3) was a top weekly gainer, with a +9.32% jump
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 23.5%. For the same stocks of the Industry, the average monthly volume growth was 16.55% and the average quarterly volume growth was 101.71%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the RSI Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 49%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.7.
1 stock in the group of tickers confirmed the positive outlook based on the MA200MA50 indicator with average odds of 75%.
The average market capitalization across the group is 14.5B. The market cap for tickers in the group ranges from 32.8M to 83.4B. NFLX holds the highest valuation in this group at 83.4B. The lowest valued company is FENG at 32.8M.
- 4/21/22 5:15 AM: Netflix (NFLX, $226.19) saw a $55.2B market cap decrease this week
The average weekly price growth across all stocks in the group was -2.29%. For the same group, the average monthly price growth was -23.33%, and the average quarterly price growth was -32.11%. ANGI experienced the highest price growth at 24.09%, while MSTR experienced the biggest fall at -30.48%.
- 5/14/22 4:23 AM: Angi (ANGI, $5.1) was a top weekly gainer, with a +24.09% jump. Expect an Uptrend continuation
- 5/10/22 5:36 AM: Phoenix NEW Media (FENG, $0.44) is a top weekly loser for penny stocks, falling -18.63%
- 5/6/22 5:04 AM: CoStar Group (CSGP, $61) was a top loser this week, declining -6.81%
The average weekly volume growth across all stocks in the group was 27%. For the same stocks of the group, the average monthly volume growth was 178.08% and the average quarterly volume growth was 80.05%
- 5/13/22 4:49 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 724% of the 65-Day Volume Moving Average
- 5/12/22 5:32 AM: The volume for Phoenix NEW Media stock increased for one day, resulting in a record-breaking daily growth of 456% of the 65-Day Volume Moving Average
- 5/11/22 7:39 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 261% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows