After a failure of IPO in November 2013, social media giant Twitter is now showing a significant rise in it. Shares are near new highs in the current stock market rally, but the question remains if it is good to buy now? Maybe we have the answer for you. Though the company has made several strategic moves in recent months and the shares also have a nice run, there are still some risks from a technical perspective.
Price and Comparisons
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Shares of Twitter Inc., TWTR, -0.31 slipped 0.46% to 66.72 USD on 27 April at 4:30 am. It resulted in an all-around mixed trading session for the stock market. The stock underperformed when compared to other competitors as Facebook Inc., FB, +1.91 increased 0.63% to 303.04 USD and Microsoft Corp., MSFT, +0.40 increased 0.15% to 261.55 USD.
Recently, on February 9, the company reported Q4 results that beat analyst estimates as revenue climbed 28%. Its costs and expenses totaled $1.04 billion, an increase of 20% year by year.
According to the IBD Stock Checkup, the Twitter stock has a 92 out of highest-possible 99 Composite Rating which helps the investors to easily gauge the quality of stock’s fundamentals and technicals. TWTR is ranked 10th in the group in Group leadership whereas the 1st rank is held by PINS.
Twitter has 60 out of the highest-possible 99 EPS rating which figures out the fundamental strength of a company by looking at quarterly and annually earning growths. It also got a C grade in SMR rating which is used to help investors identify companies with Superior sales, growth, profit margins, and return on equity ratios.
Good Time to Buy Stocks
The best tech stocks to buy are not guaranteed to be huge stock market winners but they should have qualities seen in past stock market winners before big price gains.
Twitter is back above its 50-day moving average. Twitter stocks gapped up on February 10 after Q4 results. The revenue was raised by 28% to $1.29 billion and the ad revenue also rose 31% to $1.15 billion. The company’s mobile daily active data users increased by 5 million from the third quarter to 192 million in Q4, which was a bit low from analysts’ expectations of 193.5 million.
Buyers were on the stock again on February 25 after the company said in an SEC filing that it plans to double the revenue till the end of 2023, with 315 million active users.
Twitter is a social networking site that allows users to post and interact with each other using messages known as ‘tweets’. It competes with the likes of FANG stock Facebook(FB). Only registered users can like and retweet a post while unregistered users can only view them. Twitter Inc. is in San Francisco, California, and has more than 25 offices worldwide.
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