Madrid
Short

Buy the rumor By the numbers first.

NYSE:TWTR   TWITTER INC
325 4 6
Buy the rumor? Seriously?

By the fundamentals first

Twitter Market Cap : 34 B
Twitter Debt : 2 B
Twitter Free Cash flow : -120 M

Google             Free cash flow : 11.4 B

Is this rumor founded on solid ground? Google             would have to meaningfully dent its cash flow to even consider this buy. And just by the market cap, not considering the debt value yet. So from this perspective logic says no. In my opinion, this buy will remain as a rumor.

Next, the technicals in the big picture say that Twitter has been in a consolidating triangle. On January this year it was at the bottom of the support line when the "First rumor" spreaded, this boosted the price to the upper side of the consolidating triangle, good, perfect timing, this move was expected from the technical point of view, and it was amplified after this boost. When it started to decline heading back down to the support line of the triangle, boom baby! "The rumor" is spreaded again but this time with a lower average volume and a strong momentum divergence, at the top of the channel resistance level and trying to reach the previous high of 55.

By the way, I see a repeating pattern from September last year from the technical point of view, it hit the upper resistance of the consolidating triangle and went to the 30's level.

My rumor is that this will hit back the 50 level, a lovely psychological target and it could hit the lowest part of the channel at 46.
timwest PRO
2 years ago
Great job on outlining your analysis. "AGREE".
Reply
Madrid PRO timwest
2 years ago
Thank you Tim. I love this site, the technical and fundamental tools it provides are awesome.
Reply
Lanmar PRO
2 years ago
Fantastic
Reply
MertErten
2 years ago
nice analysis,
thank you
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out