Twitter Had An Eventful Tuesday

U.S. President Donald Trump met with Twitter Inc’s Chief Executive Jack Dorsey on Tuesday, hours after attacking the social media company over his claims it is biased against conservatives.

Jack kept it professional and said the meeting with the President was constructive and that Twitter is commitment to protecting the health of the public conversation ahead of the 2020 U.S. elections.  It appeared the meeting outcome was mutual by the President.

But the real news was their earnings report that was released on Tuesday as well. Twitter reported first-quarter earnings took Wall Street by surprise.  Twitter earning 37 cents a share on revenue of $787 million, up 18% vs Wall Street expectations of a decline of 6% to 15 cents a share on revenue of $775 million.  In addition, monthly active users came in ahead of expectations by 9 million (330 million vs. expectations of 321 million). And Wall Street was loving the results.

RBC Capital Markets, Mark Mahaney

Twitter “continues to execute significantly better, and those 8MM DAU adds feel like a potential inflection point.” Taking a bullish stance, RBC is still looking for simpler valuation or further evidence that health improvements or new growth curve initiatives will sustain or accelerate current revenue and DAU growth rates.

Rates sector perform, raises PT to $38 from $34

FBN Securities, Shebly Seyrafi

Strength in the U.S. was “particularly impressive” with revenue up 25% year-over-year despite international revenue slowing to 11% year-over-year. “Health continues to be TWTR’s highest priority, and we applaud the company’s strategy and execution here.”

Rates outperform, raises PT $45 from $40


On the monthly chart, price is finally breaking out of the eight month consolidation.

Thus, the chart suggest price can move higher to the monthly supply within a monthly supply at $52.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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