Twitter Inc. ($TWTR) Stock | User Growth Weighing On Stock Price


Twitter Inc. (NASDAQ: TWTR)



Twitter Earnings

Wednesday after the close, shares of Twitter (TWTR) took a dive despite posting better than expected earning results. TWTR posted adjusted earnings per share of 16 cents over analyst’s prediction of 12 cents on $710.5 million in revenue compared to analyst’s estimates of 710.1 million. These results look great, however, what is not that great and what is putting pressure on shares is the monthly active users (MAU), which remained stagnant at 320 million, the same amount as the previous quarter. Another factor in the selling pressure on TWTR shares is the guidance they issued for the next quarter, which came in at the  $595 to $610 million range, well below expectations of $633.3 million. This did not sit well with traders and resulted in shares hitting all time lows of $13.91. Following their earnings results, TWTR received downgrades across the board from all the major firms with the worst coming from J.P. Morgan slashing 43% off their original price target of $46 down to $26.


CEO Comments

“We’re confident that with disciplined execution, this growth trend in active usage will continue over time. We spent the last six months structuring the organization and our leadership team to move with greater agility and focus, reviewing the state of our service and strategy, learning from what we’ve shipped, and developing a stronger point of view about what we are and what we want to be.” (SeekingAlpha)


TWTR Technicals

TWTR Chart

TWTR has been under a lot of pressure ever since they released earnings on accident during the trading day back in April and have never quite recovered. Since reaching highs of $74.73 they have come all the way to the mid teens where they currently trade, almost an 80% decrease in value. TWTR closed the day at $14.98 before they released earnings and quickly sold off to all time lows. When reaching new trading prices like this its hard to say where the support will come in so it’s best to look at whole numbers, however, resistance should be met at $14.50 and $15 price ranges. If you’re a believer in TWTR then you can consider this a time to get in on the cheap but keep in mind that they have had a hard time maintaining growth in active users and will need to show some improvement for this stock to get some momentum to the upside.


Company Profile

Twitter, Inc. is a global platform for public self-expression and conversation in real time. It provides a network that connects users to people, information, ideas, opinions, and news. The company’s application provides social networking services and micro-blogging services through mobile devices and the Internet. It can also be used as a marketing tool for businesses. Twitter was founded by Jack Dorsey, Christopher Isaac Stone, Noah E. Glass, Jeremy LaTrasse, and Evan Williams on March 21, 2006 and is headquartered in San Francisco, CA. (MarketWatch)