Twitter Inc (NYSE:TWTR)’s Stock Breaks Out After Earnings Release

Twitter Inc (NYSE:TWTR) ‘s stock is soaring higher after reporting second quarter revenue of $312 million against the $283 consensus estimate.

Prior to the earnings announcement, the shares have under-performed in the prior three months, down 11%, but off the lows of May. At the same time that the stock has staged a comeback, short-interest in the shares has declined sharply from the April peak. Effectively the base is now neutral without a bearish skew.

Analysts this month had been relatively neutral on Twitter Inc (NYSE:TWTR) leading up to the highly anticipated results following the World Cup. This week Telsey Advisory Group reiterated their price target of $43 which the stock has flown by after-hours. Last week Raymond James initiated coverage of the company with a Market Perform rating. Several other firms also weighed in last week as ISI Group and Tigress Financial both initiated coverage with a Neutral rating. There were a couple bullish firms on the stock going into this report. Both Goldman Sachs and Topeka Capital Markets reiterated their Buy rating on the stock this month, leading up to the earnings event.

In looking at the consensus, sell-side analysts currently have a price target of $43.76, which should certainly boost higher this week after the firms put out updated models.  There are 3 sell ratings, 22 hold ratings and 14 Buy ratings currently on TWTR.  Before the surge after-hours today, the stock had a 50 day moving average of $38 and a 200 day moving average of $45.

 

 

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