Hold, Sell or Buy?
Twitter INC (TWTR) will publish its earnings report for the second quarter of 2021 on July 22 Thursday. The different expectation for total revenue is between $980 million and $1.08 billion.
The Zacks Consensus Estimate for revenues stands at $1.06 billion, 54.5% up from the same quarter of 2020. For EPS, expectations are $0.07, indicating a growth of 105.04% from the same quarter of last year.
For this report and to know how to trade Twitter, there are some points that we have to check to understand why. According to Zacks Investment Research, Inc, it is in a Holding position.
One of the primary income of social media is Advertisement; as we are in fast recovery mode in the US and most developed economies, it is expected to increase total revenue, getting supported by more events and product launches. "The Zacks Consensus Estimate for advertising revenues is pegged at $922 million, indicating growth of 64.1% from the year-ago quarter`s reported figure."
New features in the application, such as "audio chat rooms" and "content subscription and Ticketed Spaces," were the focus of the company to increase the user`s interest, now we have to wait and see the report that how the company was successful in selling them to its audience.
On the other hand, the Active user number and New User numbers usually come out Daily and monthly.
From a technical point of view, it moves in a clear uptrend in all short and large timeframes. $67.40 is a pivot point, and trading above this level can support the market bulls. Staying above PP with a positive report from Twitter will put the third Resistance at $72.00 in the spotlight, while negative earnings report and breaching under PP, can remember the market participant and investors the gap under $57, tested back in Friday, April 30.