From an investor standpoint I don't get why the stock is up 30%. I could understand if the stock was going to up 1-8%, but 30+%? Is it all the shorts covering? Is it the fact they brought in a wall street insider as CFO (Anthony Noto).
Wall Street was expecting a loss of 1 cent per share, but they surprised on earnings of 2 cents a share. Not a huge surprise.
Other things that irk me about the stock.
Management, I don't feel a warm and fuzzy having a non founder has a CEO. Nothing that Dick Costello has done to show me he has any long term vision.
They fired almost everyone is senior management. Which shows signs of instability.
*I haven't seen any product innovations come out of twitter from a end user standpoint organically.
The stock has already been hammered down over the past few months because last earnings report made it look like growth velocity was slowing but this earnings report shows that growth velocity is recovering (growth is accelerating) so a lot of these major concerns have been addressed and the price has now recovered back to where it was before these concerns. That's my analysis at least.
Usually, but not always with fast moving momentum stocks like TWTR. The initial movement is triggered by algorithms that try and figure out if the earnings report was good or not. I remember an absolutely wild Facebook swing after an earnings statement that went from huge up to down the next day (once it was mentioned on the conference call that teen usage was down).
There are going to be a ton of sellers tomorrow (if I had any shares I sure would), it will be interesting to watch. You know that some of the bears who got squeezed this afternoon are going to double down and be back on the hunt tomorrow.
TWTR traded like 27M shares in the first hour after the close today, which is roughly equivalent to the average _daily_ volume. This was not prices getting pushed around in a thin market.
Might it be that the new crop of greedy MBAs and investors on the Street are colluding, trying to find new and quick ways to extract lots of capital and make themselves wealthy by pumping up tech stocks?
Wall Street was expecting a loss of 1 cent per share, but they surprised on earnings of 2 cents a share. Not a huge surprise.
Other things that irk me about the stock.
Management, I don't feel a warm and fuzzy having a non founder has a CEO. Nothing that Dick Costello has done to show me he has any long term vision. They fired almost everyone is senior management. Which shows signs of instability. *I haven't seen any product innovations come out of twitter from a end user standpoint organically.