Until now, 2019 has been favorable to Twitter (TWTR), with shares up more than 14%.
Analysts are preparing for the stock. Thursday's shares closed up 2.6% to $ 33.09, after analysts at Bank of America / Merrill Lynch double-valued their shares from underperformance to the benchmark. buying and raising their price target from $ 31 to $ 39.
The goal implies a rise of nearly 22% compared to Wednesday's close. According to analysts, Twitter is gaining ground among users aged 18 to 29, while suggesting that a greater number of users would likely spend more time on the platform. If so, Twitter has potential for improved engagement and revenue.
JPMorgan also claimed Twitter shares. On Tuesday, analysts ranked Twitter among their best ideas, with Facebook (FB) and Amazon (AMZN). They have an overweight index and a $ 44 price goal on Twitter, which represents an increase of about 35%. Analysts say Twitter is improving its platform, as well as the return on investment of advertisers, making it a more attractive selling point for marketers.
Given the strength of these two analysts, should investors be more optimistic about Twitter?
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Trading on Twitter Stock
One-year chart of Twitter stock (TWTR)
Twitter has been a volatile name over the past year, although overall market volatility in the fourth quarter has not helped. The crises we have experienced in Snap (SNAP) and Facebook have also not been recorded in the last six to twelve months.
After this year's rapid recovery, we have already seen TWTR exceed moving averages of 50 days and 100 days and reach 200 days as we speak. Ideally, Twitter stocks would consolidate above the $ 31.40 mark, which is more or less the 100- and 21-day moving averages.
A return to the $ 30 level would probably be more likely, especially if we get a significant pullback in the broader stock market. Whatever the case may be, we need to see Twitter's shares break the 200-day mark, and then the $ 36 mark, if one or the other analyst wants to be right with his call. On this note, they have plenty of time to watch him play, as we are only 10 days in January. Five days in a row and more than 16% during this period, Twitter will probably have to calm down. Let's see where the support comes in, then we can see it's going to challenge the 200 days.