Twitter shares gain the most in 13 months on Thursday on strong user growth, earnings in third quarter

Shares of Twitter Inc (TWTR) marked their best daily performance in 13 months yesterday, following the release of better-than-anticipated third-quarter results.

Twitter shares closed higher for the first time in the past nine trading sessions on Thursday. It has also been the sharpest daily surge since September 23rd 2016. The stock went up 18.49% ($3.17) to $20.31, after touching an intraday high at $20.63, or a price level not seen since July 20th ($20.88).

In the week ended on October 22nd the shares of the social media company lost 4.08% of their market value compared to a week ago, which marked the first drop in three weeks.

The stock has extended its advance to 20.39% so far during the current month, following a 0.24% dip in September. The latter has been the third drop out of four months.

For the entire past year, Twitter shares plummeted 29.56%. However, the stock has rebounded 24.60% so far in 2017.

The average number of monthly active users rose 4% to 330 million during the latest quarter compared to the same period a year earlier and was up from 326 million, reported during the second quarter.

The social media company said it needed to re-adjust monthly active users all the way back to Q4 2014, as it had counted users belonging to a third-party application service as its own by accident.

Meanwhile, Twitters earnings per share were reported at $0.10 during the third quarter, or exceeding the median analyst estimate ($0.06).

The companys total revenue for the quarter shrank to $589.6 million from $615.9 million during the same period a year ago. However, analysts on average had expected a larger revenue drop – to $587.5 million.

“This quarter we made progress in three key areas of our business: we grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability”, Jack Dorsey, Twitters Chief Executive, was quoted as saying in the press release.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Twitter’s stock price, have a median target of $16.00, with a high estimate of $21.00 and a low estimate of $10.00. The median estimate is a 21.22% decrease compared to the closing price of $20.31 on October 26th.

The same media also reported that 20 out of 35 surveyed investment analysts had rated Twitter’s stock as “Hold”, while 9 – as “Sell”. On the other hand, 2 analysts had recommended buying the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Twitter stock are presented as follows:

R1 – $20.47
R2 – $20.63
R3 (Range Resistance – Sell) – $20.79
R4 (Long Breakout) – $21.26
R5 (Breakout Target 1) – $21.82
R6 (Breakout Target 2) – $22.17

S1 – $20.15
S2 – $19.99
S3 (Range Support – Buy) – $19.83
S4 (Short Breakout) – $19.36
S5 (Breakout Target 1) – $18.80
S6 (Breakout Target 2) – $18.45

By using the traditional method of calculation, the weekly levels of importance for Twitter Inc (TWTR) are presented as follows:

Central Pivot Point – $18.04
R1 – $18.44
R2 – $19.00
R3 – $19.40
R4 – $19.79

S1 – $17.48
S2 – $17.08
S3 – $16.52
S4 – $15.95