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Strength Seen in Twitter (TWTR): Can Its 27.1% Jump Turn into More Strength?
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Twitter shares ended the last trading session 27.1% higher at $49.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.7% gain over the past four weeks.
The upswing in share price was driven by Elon Musk’s 9.2% stake buyout in Twitter, as confirmed by the company. Musk became the biggest shareholder in Twitter.
This short messaging service is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -68.8%. Revenues are expected to be $1.23 billion, up 18.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Twitter, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TWTR going forward to see if this recent jump can turn into more strength down the road.
Twitter is a member of the Zacks Internet - Software industry. One other stock in the same industry, SolarWinds (SWI - Free Report) , finished the last trading session 1.3% lower at $13.35. SWI has returned 9.6% over the past month.
SolarWinds' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of -52.2%. SolarWinds currently boasts a Zacks Rank of #2 (Buy).
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Strength Seen in Twitter (TWTR): Can Its 27.1% Jump Turn into More Strength?
Twitter shares ended the last trading session 27.1% higher at $49.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.7% gain over the past four weeks.
The upswing in share price was driven by Elon Musk’s 9.2% stake buyout in Twitter, as confirmed by the company. Musk became the biggest shareholder in Twitter.
This short messaging service is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -68.8%. Revenues are expected to be $1.23 billion, up 18.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Twitter, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TWTR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Twitter is a member of the Zacks Internet - Software industry. One other stock in the same industry, SolarWinds (SWI - Free Report) , finished the last trading session 1.3% lower at $13.35. SWI has returned 9.6% over the past month.
SolarWinds' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of -52.2%. SolarWinds currently boasts a Zacks Rank of #2 (Buy).