Twitter double bottom + fundemetals.

2018年4月26日

Twitter has been getting a lot of firm interest lately. With JP Morgan raising their price target and the CEO of Goldman Sachs tweeting a photo at twitter headquarters, many investors think more institutional money will be funneled into the stock. The rumors of firms acquiring more twitter shares have short sellers scaling back and because of this twitter has begun to rally. On the technical side the stock looks decent with a double bottom in price and exuberant upside during 2017. Investors buying into twitter at the moment are buying off of speculation, as the company only in the last two quarters have achieved profitability. An earnings report beating analysts expectations at the end of 2018 I believe could send the stock into the 40$ range.

After 3 straight years of negative earnings reports twitter has finally started making profit in the last two earnings reports. To me this signals a change of direction for the company changing from acquiring more users to acquiring more advertisers. Exuberance will come back into the stock if Twitter can keep up its profitable earnings reports. The company is relying on profitability NOW in 2018 in order to succeed.

I can see twitter doing what many other companies have done and "claim blockchain". The CEO of Twitter, Jack Dorsey, tweeted that he is a bitcoin bull. Since the CEO of twitter realizes block-chains potential, twitter integrating a blockchain advertising system eliminating middle men is not impossible and I think would help the company achieve profitability. Investors tend to get exuberant when a company "claims blockchain" so this could be good for twitter's stock as well. Of course this is an unlikely prediction but nothing is impossible.

Twitter had a 10% run up on the 17th, a few days before its earnings report, the 25th. The reason the stock is down on earnings day is because Twitter did not beat their earnings last quarter and traders swinging earnings reports sold the stock. Twitter is forming a steady trend line (kudos to DevinBoule55). And i think that even though Twitter did not beat its last earnings report, it is showing profitability and there is many green earnings reports to come.



Overall I am Bullish on Twitter. 28$ is not a bad buy. My price target for the end of 2018 is 40$, That could easily be raised depending on future earnings reports.