Twitter, Inc. (NASDAQ: TWTR)
Twitter, Inc. (TWTR), a social media media company is trading up 5% at $17.50 as of late Wednesday afternoon trading. TWTR stock is up on speculation that Rupert Murdoch owned publication company News Corp (NWSA) has bought a stake in the company. TWTR stock climbed all the way to highs of $19.04, or equivalent to 14%. While NWSA stock has also rallied off of morning lows. As per Reuters “News Corp said rumors about the company’s interest in buying microblogging site Twitter Inc or building a stake in it were untrue.” (Reuters) Even after the rumors were denied TWTR stock is still holding onto gains of 5%.
TWTR Technical Analysis
TWTR gapped down in price yesterday to $16.16, down from the prior day’s close of $16.69, which is a 3% decrease in price. However TWTR shot up 14% mid afternoon on speculation of News Corp buying a stake in the company. Now there is a report that News Corp has denied the rumors which could lead to a late fade into the close. Taking a further look down the daily chart we can see that TWTR has been on decline for most of the past year dating back to April 27th when it traded at $51.66 a 68% drop in price. Before the rumor news hit TWTR stock hit its 52 week low price of $15.48 in early morning trading on Wednesday. Which could have played into this rally as shorts may have covered their positions with fears of the possible takeover rumors. TWTR has a 52 week high price of $53.49 so if the rumors do end up being true there is a lot of room for the stock to move up. TWTR has a float of 562.79 million shares and is trading over 3 times the normal daily trading volume. For trading purposes, I would like to see if the stock can hold the $17 price level and use that as a possible support level moving forward.
Twitter Profile
Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. It offers various products and services for users, including Twitter that allows users to create, distribute, and discover content; and Vine and video, a mobile application that enables users to create and distribute short looping videos. The company also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends that enable its advertisers to promote their brands, products, and services; and subscription access to its data feed for data partners. In addition, it offers a set of tools, public APIs, and embeddable widgets that developers can use to contribute their content to its platform; syndicate and distribute Twitter content across their properties; and enhance their Websites and applications with Twitter content. The company was founded in 2006 and is headquartered in San Francisco, California. Yahoo Finance
