rtmark
LearnBonds.com

Twitter Inc (NYSE:TWTR) Q4 Numbers Will be ‘Make or Break’

Twitter Inc (NYSE:TWTR)

Twitter Inc ’s stock has had one hell of a roller coaster ride. Though shares are down 23% year to date, they closed yesterday up more than 2.5%. Volatility has been rampant, and Wednesday was a perfect example of that. The stock was hovering near record lows for much of the session, when rumors of a potential takeover sent shares soaring as high as 13%.

With no bottom in sight, investors are confused. And adding to that confusion is the lack of any consensus on Wall Street.

Twitter Inc (TWTR)

Twitter is at Best a “Hold”

With Google and Facebook still gobbling up the bulk of online ad spend, the future of Twitter Inc ‘s comeback plan is unclear, reckons analysts Mark Mahaney and Andrew Bruckner of RBC Capital Markets. The investment bank has a “sector perform” rating on the stock.

Twitter’s monthly active user growth had decelerated to 11% during the third quarter of 2015. In fact, measurement firm comScore estimates that the declining user growth was coupled with deteriorating engagement. Analysts have “great grist for a sell call,” Mahaney and Bruckner wrote in a January 10 earnings preview.

But not everything about the stock is negative. Even by monetizing its users at a fraction of what its bigger rivals are doing, Twitter has managed to retain its “unique value proposition” and “strategic significance.” No wonder the stock can still be found in many portfolios despite the severe hammering it has received this year.

Twitter Q4 Numbers Will Be Key

Robert Peck, Internet equity analyst at SunTrust Robinson, has recently upgraded Twitter Inc ahead of what he sees as strong growth catalysts. He told CNBC last week that changes like tweets appearing in Google search and expansion in live video augur well for the stock.

“As that starts to grow and turn around, you can now start to change the whole meme of the story as going more towards a sort-of billions platform user system,” Peck said. “What you need now for this stock to work…is you need to show a proof point here. You need to show that the users can start to inflect, and grow again.”

So given the conflicting outlooks, what does an average investor do? The logical step would be to wait for quarterly earnings, slated for release on February 10, to get a better picture of Twitter’s internal state of affairs. If user growth and engagement doesn’t pick up during the fourth quarter, long-term investors would be better off without the stock.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar