scheplick

Twitter after earnings - Dropped hard

NYSE:TWTR   Twitter Inc
Twitter just get hit hard after earnings . I personally was super impressed with their earnings and revenue growth. Free cash flow was awesome, too. US markets are doing well, globally, too. I really like Twitter but was bummed to see the drop. What's my game plan or thoughts?

I will wait until $40. I think there's a lot of support there. If some people sell and get shaken out, $40 is in perfect dip position. Possibly down to $38. I've set the levels and will try to wait as patiently as possible.

The market loves to value Twitter on its daily user growth and compare that to sites like Pinterest and Snapchat. Daily user growth is not a great metric and there is no industry standard. How do we know Snapchat is counting it the same way Twitter is or Pinterest? Or Vice versa? I trust the companies that are making money and actually delivering results to advertisers. Snap has never made a dollar in free cash flow, for example. So it's interesting to me to think the market would value some user numbers more than actual cash? But who knows. I may have this all wrong.

That's my personal view and let's find out what happens next! No advice, just watching. Also one final thing: I do think Twitter could do a better job at allowing free speech and keeping it a platform. Also their editorial recommendations and news stories are really bad and never related to my interests. This is an obvious change for them.
I work at TradingView helping to build charts, tools, and software for everyone interested in financial markets.

Twitter: https://twitter.com/scheplick
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Comments

The DAU miss was large, unexpected, and important to the market. I don't see a continuing bull case for TWTR unless they release some sort of paid subscription model to the service - the company has been around forever and 'is what it is' so to speak. Will be fairly valued to slightly overvalued where it opens this morning, imo.
+1 Reply
scheplick Pholesolus
@Pholesolus, Agree. That DAU miss did not help
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YBearBull Pholesolus
@Pholesolus, what do you mean about DAU??
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They could run into some antitrust issues in the near future.
Also the CEO Jack Dorsey just perjured himself yesterday
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This is called "Crouching Tiger Hidden Dragon" style. Any price is good now or at 38.
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amazing work sir!!!
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This hurt really bad :((
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nice work sir
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Nice idea
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Great analysis, i think the dump was unjustified and investors overreacted , the stock is still a great investment i would say 100$ per share is a fair price ..
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