For a few years, Twitter has been one of the most painful names for both bulls and bears. Over the past year, the bulls have felt the brunt of its poor performance as the competition passed them by. Recently, some trends have been turning in their favor. Its most recent earnings report was the best one Twitter has delivered in years, and that may have sparked some institutional buying.
Note the channel this stock was in since the disastrous Q2 was reported in July. Since then, it has put in a series of higher highs and higher lows – signs of some bullish behavior. Money flow in September and October was quite good, indicating a positive Q3 earnings report. Sure enough, the stock gapped higher before pulling back to the support area (top of the channel). That support held strong, and now the stock is ready to move higher.
The heavy money flow died down but is starting to move higher again. We are looking for a move past 22, then onto 25. Eventually, it may move up into the 30’s by early 2018. In short, I like Twitter.
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About Twitter
Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, and syndicate and distribute Twitter content across their properties and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company was founded in 2006 and is headquartered in San Francisco, California.
