Can Twitter Stock Keep Going After Last Week’s 13% Pop?
Twitter (NYSE:TWTR) finally gave the bulls something to tweet about that doesn’t involve takeover speculation. Shares of the social media giant soared 12.7% last week, moving higher after posting better-than-expected financial results. CEO Jack Dorsey also bought more shares following the blowout performance.
Twitter’s first quarter is checking in with revenue of $548.3 million, 8% below where it was a year earlier. This is Twitter’s first year-over-year decline on the top line, but Wall Street’s measuring tape is all about where you stand based on expectations.
Twitter (TWTR) is regaining some of its popularity, but it’s not in the clear
Twitter reported its latest quarterly earnings on Wednesday, and the results were better than expected. After months of lower-than-desired performance, the company reported a big beat on daily user growth. The social media site now has 328 million people (and bots) every month tweetstorming and doling out pithy comments, a 14% year-over-year increase.
That’s undoubtedly a good thing for Twitter, but it’s far from a saving grace. Apart from the eternal complaints over harassment on its platform, the company is still struggling to turn its users into ad dollars. As this chart from Statista shows, that’s led to a continued dip in revenue growth, and the company’s first year-over-year revenue decline.
Jack Dorsey buys $9.5 million in Twitter-TWTR stock while continuing to sell Square
Twitter Inc. stock jumped about 1% in late trading Friday after Chief Executive and co-founder Jack Dorsey tweeted that he had purchased more than 500,000 shares of the company.
Dorsey’s tweet was a reply to one he sent in February, when the Twitter TWTR, -0.78% CEO posted a link to an SEC filing that showed he had purchased more than 400,000 shares, spending about $7 million. An SEC filing Friday afternoon showed that Dorsey paid $16.62 a share for the latest shares, for a total purchase price of slightly more than $9.5 million.
Today’s Trading Lesson…
Today we present a behind-the-scenes video of a coaching call. | Duration 14:26
I work hard, I’m sure you do too. In this short training clip you learn how to jump from knowledge to skills. At some point you must pay attention, and trade for feedback, not results. Yes, I know, we get paid on results, but…results are the effect. We need feedback on the cause. Our new goal, our main goal becomes an obsession.
An obsession to understand how to produce the results. No longer is your focus solely on the P&L, but in understanding how to produce it. Trading becomes an exercise in feedback and adapting. Once this feedback loop uncovers your strategy, trading becomes easier.
Listen in and watch how I discuss WHAT to pay attention to, in order to achieve a reliable six-figure trading income.
Please leave your comments and questions below.
On the Tape Today | 5-1-17
EW | Edwards Life Sciences holding a solid bullish gap and produce consecutive inside days. Looking for a trend day to begin a new swing trade long. A $110.25 buy-stop triggers the entry with a target to sell @ $120. Stop loss on a close below $108.50.
X | United States Steel Corp holding a bearish gap with room to go. The stock produced a clear top in February which lead to solid bearish order flow. Planning a $22 sell-stop and an initial target of $22 as a price to add shares. Ultimate target of $16.50 to cover the short sale.
Tape Reading the SPY ETF
$SPY price action closed on the lows, but holding the momentum gap higher.
Mixed signals coming into today. A light volume pause after a gap typically leads to follow through, and all signs point to that type of price action.
A few bullish stocks continue to represent a majority of the S&P 500, and they are showing double normal volume near highs. Stocks such as AMZN traded massive bearish volume last week. I’m not calling a stock market top, but if these few stocks turn tide, look out below.
Keep in mind I said “if.” Great game planning calls for IF-THEN scenarios. You put the pieces together and choose your best ideas. The SPY ETF closed on the low but traded a meager 53 million shares. Am I hedging my call? No. Simply helping you understand how much you need to consider, when determining your bias.
The more of these pieces you can put together, and give meaning, the more conviction you have to accept risk. The very act of collecting and assessing this information, gives or takes conviction. Yes, let that sink in. Before you place a trade, you should have a feeling of conviction. Think about how deeply that affects your trade management.
Trading is so much more than the hard right edge of the chart. A few big earnings this week AAPL, FB and TSLA should clear up the volume/price action picture.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 5-1-17 | Monday Edition
Bullish Momentum: CERN
Bearish Momentum: x, kss, adi, eqt, tsn, nfx, hal
Long-Term Order Flow
Bullish Order Flow: SRPT, WDC, TSLA, FB, BIVV, HON, BA, AMZN, DE, UNH, BABA, HD, ADSK, MCD, STT, WYNN, UNP, CIT, ACN, EA, ADBE, UTX, DIS, MA
Bearish Order Flow: x, dfs, slca, fast, panw, nfx, hal, eog, tsco, slb, apc, esrx, ibm, apa
2X Normal Volume: SYF, WDC, TXN, CERN, SRPT, GRUB, BIDU, AMZN, COF, HON, DFS, CIT, SWKS
Inside Days: x, csco, aal, pypl, kmi, uaa, nvda, slb, cvx, cvs, nke, nflx, wmb, met, abbv, jblu, luv, hd, apc, aig, lvs, oxy, dish, celg, wfm, apa, mur, grmn, incy
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