Why Twitter’s Stock sank as Market Gained

(Zacks)

Twitter (TWTR) closed the most recent trading day at $54.30, moving -1.11% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.08%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.29%.

Prior to today’s trading, shares of the short messaging service had gained 21.4% over the past month. This has outpaced the Computer and Technology sector’s gain of 7.44% and the S&P 500’s gain of 3.8% in that time.

Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. On that day, TWTR is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 20%. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, up 16.31% from the year-ago period.

TWTR’s full-year Zacks Consensus Estimates are calling for earnings of -$0.73 per share and revenue of $3.61 billion. These results would represent year-over-year changes of -130.8% and +4.34%, respectively.

It is also important to note the recent changes to analyst estimates for TWTR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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