GameStop Does Some Rebranding, Gains Twitter Nod

GameStop apparently has no use for the popular phrase, ‘if it ain’t broke, don’t fix it.’ The gaming retailer is making changes, including the rebranding of its EB Games segment in Canada. The company’s EB Games locations throughout Canada as well as its e-commerce store will be operating under the GameStop name by the end of the year. GameStop’s Canadian rebranding comes in response to feedback from its customers and investors.

The move is being met with mixed reactions on social media. Some users are questioning the use of the company’s resources to make the change, while others are saying it took them long enough. One thing that people seem to agree on is that if GameStop wants to remain relevant, it is going to have to transform itself into a digital-focused company. That is precisely what GameStop is trying to do.

Digital Push

GameStop is getting a boost from social media giant Twitter. According to reports, Twitter is including GameStop in a group of companies that will be permitted to make a product push on their account page as Jack Dorsey’s company similarly looks to broaden its reach.

GameStop is one of 12 companies that will be able to spotlight nearly half a dozen products on its Twitter profile page. Reminiscent of the Tinder dating app, there will be a “swiping” capability as well as the opportunity to be brought to GameStop’s e-commerce site to complete a sale.

This program, which is dubbed Shop Module, could go a long way for GameStop’s desire to be part of the digital pack, which is where all of the gaming companies reside. For its part, Twitter won’t become an e-commerce site in the true sense of the word, as it won’t actually be processing any of the transactions or taking a piece of the sales pie.

Cruel Summer

Twitter’s stock is higher on the day, but GameStop is trading in the doldrums. GameStop’s stock is down more than 5% today and has fallen below the USD 170 level. In early June, GameStop shares were trading at more than USD 300 but it has been a cruel summer for meme-stock investors.

Meanwhile, GameStop has muscled its way into the S&P 400 midcap index, effective early August. GameStop’s market cap currently hovers at USD 12.6 billion.

U.S. Stock Markets Hit New Highs, Treasury Yields up as Choppy Week Ends

Megacap tech stocks and positive corporate earnings helped drive main U.S. indexes up again. Yields on U.S. Treasuries were also up, as was the dollar, with investors eyeing next week’s Federal Reserve meeting for hints on the U.S. economic recovery from the COVID-19 pandemic and when the central bank will pull back support for the economy.

“It’s certainly been a really strong run. For now it looks justified based on the strong earnings results. We got interest rate stability, which was helpful. As the economic recovery continues, as long as people are continuing to get out there despite the Delta variant, we think stocks can go higher,” said Jeff Buchbinder, equity strategist for LPL Financial. “We think the ride will get bumpier in the second half, but we think the bull market continues.”

The Dow Jones Industrial Average rose 238.2 points, or 0.68%, to close the week at 35,061.55, while the S&P 500 gained 44.31 points, or 1.01%, to 4,411.79. The Nasdaq Composite added 152.39 points, or 1.04%, to close at 14,836.99.

The greenback on Friday booked a second week of gains after a volatile few days as risk appetite waxed and waned.

The dollar index, which measures the greenback against a basket of six major currencies, was slightly higher on the day at 92.894. That was off a 3-1/2-month high of 93.194 hit on Wednesday.

For the week, it was up 0.1%, after rising 0.6% previously.

The yield on 10-year Treasury notes hovered around 1.3%, or almost 17 basis points higher than a five-month low set on Tuesday, but was still at the low end of a recent range. The benchmark note traded up 2.1 basis points to 1.288% after briefly rising above 1.3%.

“We’re closing out the week on a very nice trade, and it’s being driven by earnings primarily and earnings specifically in stocks that speak to the consumer, which is not a new story but it’s a story that adds momentum to the trade in the second half of the year,” said Peter Kenny, founder of Kenny & Co LLC, the parent company for Strategic Board Solutions and Kenny’s Commentary, a subscriber-based political and economic newsletter.

After declining earlier in the trading session, oil was set to end the week slightly up.

Investors have been assuming “things will improve, travel will increase,” said Steve Massocca, managing director at Wedbush Securities. “There are concerns about the Delta variant.”

Massocca added, “If that thesis is thrown into jeopardy, it put a hitch in the ‘giddy up’ in the market.”

Some parts of the United States are implementing mask mandates again due to new COVID-19 cases, while others have not, leading to confusion.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity, a report from data firm IHS Markit showed on Friday.

Positive corporate earnings helped the stock market. American Express Co jumped 1.7% after posting second-quarter profit that beat expectations.

Social media firms Twitter Inc and Snap Inc gained 3.8% and 24.5%, respectively, after their upbeat results.

Financial markets have swung from one direction to another this week as investors try to assess what the surging Delta variant means for the world economy.

After recording its steepest one-day drop since May on Monday, the S&P 500 stock index went on to post the biggest one-day jump since March a day later. Currency, bond and commodities markets have seen similar gyrations.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Jessica DiNapoli; Additional reporting by Dhara Ranasinghe and Wayne Cole in Syndey; Editing by Ana Nicolaci da Costa, Will Dunham, Pravin Char, Dan Grebler and Raissa Kasolowsky)

 

Jack Dorsey Tips Hand to Bitcoin’s Place at Twitter

Jack Dorsey is a known bitcoin bull. His payments company Square has an entire division dedicated to building on the Bitcoin blockchain and funding projects, Square Crypto. And he recently launched an initiative to make bitcoin more DeFi friendly. When it comes to his other company, Twitter, Dorsey has given the cryptocurrency a bitcoin emoji, which has left users wondering if there is more to come.

On Twitter’s earnings call on Thursday, Dorsey tipped his hand to how bitcoin fits into the future of the social media platform. He did so shortly after fellow billionaire Elon Musk pressed him at “The B Word” event on whether Twitter would accept bitcoin as a payment method from advertisers, which Dorsey danced around a bit. Musk may have been trying to take the focus off Tesla and when it would resume accepting bitcoin payments.

On the earnings call, Dorsey explained how Twitter is building out an ecosystem focused on news, conversation and payments. Next, the tech entrepreneur identified a trio of themes that are relevant to the company and its shareholders:

  • Artificial intelligence
  • Decentralization
  • “The internet, finally, having access to a global native currency in bitcoin.”

Internet Money

Dorsey is looking toward a future in which the internet has a native/global currency through which Twitter could accelerate the development of offerings including “Super Follows, e-commerce, subscriptions [and] Tip Jar.”

While Facebook has attempted to follow a similar path with its Diem stablecoin project, bitcoin is the best choice, according to Dorsey, and is where Twitter will be focusing its efforts. The Twitter chief touted bitcoin for lending itself to speed, innovation and use cases.

Bitcoin Price

While most investors are focused on what bitcoin has done lately, that can leave them depressed. The BTC price has surrendered much of its gains year-to-date. A wider lens, however, provides greater insight into the cryptocurrency’s performance compared to other asset classes.

As per data provided by Kraken’s Dan Held, bitcoin has outperformed rival store of value asset gold as well as the broader stock market over the past decade hand over fist.

For now, the bitcoin price is holding above USD 32K, and investors are crossing their fingers about moving it forward over the weekend.

Twitter Beats Revenue Targets With ad Improvements, Shares Jump 5%

Shares of Twitter rose 5% to $73 in trading after the bell.

Since the start of the year, Twitter has raced to introduce products in new areas like audio-only chat rooms and newsletter publishing in an effort to turn around years of business stagnation and reach its goal of doubling annual revenue by 2023.

Advertising revenue totaled $1.05 billion, up 87% from the year-ago quarter, and beat Wall Street estimates of $909.9 million.

Twitter has worked to improve the effectiveness of its ads, introducing 2,500 new topic categories during the quarter to help users find content they’re interested in, all of which provides more ad targeting data back to Twitter, the company said on a conference call with analysts.

“We get great signal about what people are most interested in, where they are or the places they care about,” said Twitter Chief Financial Officer Ned Segal during the call.

Those improvements, along with higher demand from advertisers seeking to reach consumers as countries reopen from pandemic restrictions, helped propel ad revenue, Twitter said.

The strong results from both Twitter and its tech peer Snap Inc, which reported quarterly revenue growth of 116% on Thursday, shows “that the overall digital ad market is on fire right now, with the reopening further strengthening advertisers’ budgets,” said Ygal Arounian, a research analyst at Wedbush Securities.

Twitter reported 206 million monetizable daily active users (mDAU), its term for users who are served advertising, for the second quarter ended June 30, matching analyst targets of 205.9 million users, according to IBES data from Refinitiv.

Its U.S. user base declined by 1 million over three months from the previous quarter due to a lighter news cycle in the United States, Twitter said, with total users worldwide in line with Wall Street targets.

Total revenue, which also includes revenue the company earns from data licensing, rose 74% year-over-year to $1.19 billion, beating analyst estimates of $1.07 billion.

FUTURE INVESTMENTS

The San Francisco-based company now expects headcount and total costs and expenses to grow at least 30% for the full year, up from its previous guidance of 25%, as it invests in its engineering and product teams.

Chief Executive Jack Dorsey, a longtime proponent of bitcoin, said during the earnings call the digital currency “is a big part” of Twitter’s future and could be used for ecommerce transactions on the platform or to tip popular content creators.

Twitter added that new privacy controls that Apple Inc implemented in April, which are designed to limit digital advertisers from tracking iPhone users without their consent, had a lower-than-expected impact on revenue in the second quarter.

The full impact of Apple’s changes have yet to be seen, and some concerns still linger, Arounian said.

Twitter forecast third quarter total revenue to be between $1.22 billion to $1.3 billion, roughly in line with or slightly ahead of consensus analyst estimates of $1.17 billion.

On an adjusted basis, Twitter earned 20 cents per share during the second quarter, well above the estimate of 7 cents.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sheila Dang in DallasEditing by Sonya Hepinstall and Lincoln Feast.)

Twitter’s Shares Rally Following Fastest Revenue Growth In Seven Years

The shares of social media giant Twitter rallied today after the company reported its fastest revenue growth since 2014.

Twitter Posts Strong Q2 Earnings

Social media giant Twitter reported its second-quarter 2021 earnings earlier today. According to the company’s press release, total revenue was $1.19 billion, a massive increase from what was reported in the same quarter of 2020.

Twitter’s Q2 revenue totaled $1.19 billion, an increase of 74% year over year. Most of the revenue was generated from advertising, with $1.05 billion reported by the social media giant. The increase in ad revenue was due to Twitter a 32% increase year over year in its ad engagements and a 42% surge in cost per engagement.

As a result of the increase in Twitter’s revenue, the earnings were 20 cents per share compared to the 7 cents predicted by market analysts. Twitter introduced its first subscription service in the second quarter of the year, with users allowed access to the Undo Tweet button and other features.

The company also introduced the Spaces audio-chat feature on mobile devices for its users with at least 600 followers. Furthermore, Twitter launched the TipJar feature that allows users to send money to other people on the platform.

Twitter Expects An Increase In Revenue In Q3

The social media giant expects its Q3 revenue to grow even higher. Twitter estimates a Q3 revenue of $1.22 billion to $1.30 billion. However, analysts polled by Refinitiv estimate it to be around $1.17 billion.

TWTR stock chart. Source: FXEMPIRE

The earnings report saw Twitter’s stock price rally by over 9% today, closing above the $69 mark. It is one of the best-performing tech stocks year-to-date. TWTR began the year trading at $54 per share. However, it has rallied by over 20% since then and could trade higher in the coming days and weeks.

Earnings vs Inflation – What Is The Right Bet?

As investment money will always be looking for a place to roost many stocks still look like the best opportunity for alpha, especially some of your bigger high-tech companies like Microsoft, Google, Facebook, etc… who don’t face the same headwinds created by supply chain dislocations, higher commodity prices, etc.

Fundamental analysis

Bulls are hoping to see more money lured into the market by strong Q2 earnings which have so far failed to ignite a meaningful rally. Analyst expectations for S&P 500 company earnings is still around +65%, something stock bears argue is lofty considering the extreme level of supply chain dislocations and labor shortages.

There is also a lot of debate about whether corporate profit gains are “peaking” in the face of slower growth in the quarters ahead as the reopening boom begins to fade. Remember, investors place bets on the future, not what happened last quarter.

The earnings pace really picks up next week with highlights including IBM on Monday; Chipotle and Netflix on Tuesday; ASML, CocaCola, Novartis, and Verizon on Wednesday; Abbott Labs, AT&T, Biogen, Capital One, Dow Inc., Intel, Snap, Southwest Airlines, Twitter, and Union Pacific on Thursday; and American Express, Honeywell, and Nextera on Friday.

Inflation

One of the biggest factors that seem to be weighing on investor sentiment continues to be inflation. The latest indication of rising costs was reflected last week in U.S. Import Prices, which climbed for an eighth straight month in June.

However, the year-on-year increase slid to +11.2%, down from +11.6% in May is an encouraging sign that some inflationary pressures might be starting to ease. Federal Reserve Chairman Jerome Powell, testifying before the Senate Banking Committee yesterday, repeated the script he’s stuck with for months, saying inflation will likely remain elevated in the coming weeks and months before moderating.

Powell also told lawmakers that the Fed is not in a hurry to start paring its monthly asset purchases but he stressed that the central bank is prepared to adjust policy if they see signs of inflation moving “materially and persistently beyond levels consistent with our goal.” Wall Street increasingly expects the Fed to start trimming asset purchases later this year and even start lifting rates as soon as Q4 2022.

The Fed meets next on July 27-28 but most analysts think Powell will wait to make any big policy change announcements at either the annual Jackson Hole symposium at the end of August or possibly the FOMC’s September policy meeting. Central banks in Canada and New Zealand this week scaled back their asset purchase schemes which some worry could start to put pressure on central bankers in other developed countries to also tighten.

The European Central Bank releases its latest policy decision next Thursday. Bulls still largely believe that U.S. growth will be able to outpace “transitory” inflation pressures but the outlook for some companies could dim if the Fed starts reining in its “easy money” policies sooner than investors have been anticipating.

sp500 analysis forecast 18 july 2020

SP500 technical analysis

SP500 pulled back last week after another attempt to break out. There is no surprise we see such choppiness in the middle of summer. Moreover, very likely this price activity will stay for a few more weeks. We are still in a bull market. However, the risk of deep pullback is rising. If that happens, SP500 will target to close the gap near 4000.

On the other hand, if the price sustains above Gann resistance 4400, bulls will target 4500 at least. Two of my favourite indicators are giving opposite signals now. So, I don’t have any strong bias at the moment. Advance Decline Line remains bearish. At the same time, Insider Accumulation is bullish. In general, swing traders have to focus on daily support and resistance. Likely it will take few more weeks to see a real direction. Short-term traders can use Gann levels and Cycles on 4h charts to find trading opportunities.

Twitter Could Miss Second Quarter Expectations

Twitter Inc. (TWTR) reports Q2 2021 earnings after Thursday’s closing bell, with analysts looking for a profit of just $0.07 per-share on $1.06 billion in revenue. If met, earnings-per-share (EPS) will mark a turnaround from the $0.16 loss posted in the same quarter last year, which included the exit from the first pandemic lockdown The stock fell nearly 10% in April after reporting weaker-than-expected Q1 user growth and providing weak Q2 revenue guidance.

Betting on Twitter Blue

The social media outlet hopes the Twitter Blue subscription service will improve its tepid bottom line in coming quarters. It rolled out the premium program in Australia and Canada in June but there’s no U.S. release date. According to the press release “we’ve heard from the people that use Twitter a lot, and we mean a lot, that we don’t always build power features that meet their needs. Well, that’s about to change. We took this feedback to heart, and are developing and iterating upon a solution that will give the people who use Twitter the most what they are looking for.”

U.S. media outlets that booked massive subscription gains during the Trump years are reporting sharp readership declines as we enter the second half of 2021, reflecting disengagement generated by the pandemic and the less-bombastic governing style of President Joe Biden. Twitter and rival Facebook Inc. (FB) are vulnerable to the same forces of political exhaustion and mean reversion, raising odds that daily average user (DAU) growth will miss Q2 expectations.

Wall Street and Technical Outlook

Wall Street consensus has deteriorated since April despite the new offering, with a ‘Hold’ rating based upon 9 ‘Buy’, 1 ‘Overweight’, 26 ‘Hold’, and 1 ‘Underweight’ recommendation. In addition, three analysts recommend that shareholders close positions move to the sidelines. Price targets currently range from a low of $30 to a Street-high $83 while the stock closed Friday’s session just $1 above the median $65 target. This placement suggests that Twitter is fully-valued at this time.

Twitter sold off from 74 in 2013 to 14 in 2016, turning higher into the 2018 high at 48. It posted a higher low during the pandemic decline, ahead of renewed upside that reached multi-year resistance in October 2020. A February 2021 breakout failed, yielding more than four months of mixed action between resistance in the mid-70s and support in the upper 40s. The tape has shown little accumulation since May despite a persistent uptick, predicting rangebound action well into the fourth quarter.

For a look at all of this week’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Earnings to Watch Next Week: IBM, Netflix, Coca-Cola, Twitter, Intel and American Express in Focus

Earnings Calendar For The Week Of July 19

Monday (July 19)

IN THE SPOTLIGHT: IBM

The Armonk, New York-based technology company is expected to report its second-quarter earnings of $2.32 per share, which represents year-over-year growth of over 6% from $2.18 per share seen in the same quarter a year ago.

The world’s largest computer firm would post revenue growth of about 1% to $18.24 billion. In the last four consecutive quarters, on average, the company has delivered earnings of over 5%.

The better-than-expected results, which will be announced on Monday, July 19, would help the stock recover its last year’s losses. IBM shares rose about 12% so far this year.

“We expect IBM to marginally beat the consensus estimates for revenues and earnings. The company has reported better than expected earnings figures in each of the last four quarters while revenue beat consensus in three of the last four quarters,” noted analysts at Trefis.

“In the past year the company has increased its investment in R&D and capex and since October has acquired seven companies focused on hybrid cloud and AI. As the pace of vaccination increases and countries are opening up, we expect the momentum to continue in the second-quarter FY2021 results as well. Our forecast indicates that IBM’s valuation is around $140 per share, which is in line with the current market price of $140.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 19

Ticker Company EPS Forecast
TSCO Tractor Supply $2.97
PPG PPG Industries $2.20
JBHT J B Hunt Transport Services $1.57
CCK Crown $1.78
STLD Steel Dynamics $3.38
PACW Pacwest Bancorp $0.99
WTFC Wintrust Financial $1.59
FNB FNB $0.28
SFBS ServisFirst Bancshares $0.93
IBM IBM $2.32
PLD ProLogis $0.45
ACI AltaGas Canada $0.68
ZION Zions Bancorporation $1.29
NVR NVR $72.35
ELS Equity Lifestyle Properties $0.28
AN AutoNation $2.67

Tuesday (July 20)

IN THE SPOTLIGHT: NETFLIX, UNITED AIRLINES HOLDINGS

NETFLIX: The California-based global internet entertainment service company is expected to report its second-quarter earnings of $3.18 per share, which represents year-over-year growth of 100% from $1.59 per share seen in the same quarter a year ago.

The streaming video pioneer would post revenue growth of about 19% to around $7.3 billion. In the last four consecutive quarters, on average, the company has delivered earnings of over 5%.

“Areopening consumer and the lingering effects of 2020’s production delays suggest risk to consensus 2Q/3Q estimates. However, more content is on the way, supporting an increase in net additions in 4Q21/’22. In this cross-asset report, we reiterate OW on shares and reiterate our recommendation to buy 10Y bonds in credit,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“We believe share performance is highly dependent on increasing global membership scale. Proven success in the US and initial international markets provides a roadmap to success in emerging markets, and scale should allow NFLX to leverage content investments and drive margins. Higher global broadband penetration should increase the NFLX addressable market, driving member growth and providing further opportunity given NFLX’s global presence. Longer-term, we see the ability to drive ARPU growth, particularly given increased original programming traction.”

UNITED AIRLINES HOLDINGS: One of the largest airlines in the world is expected to report a loss for the sixth consecutive time of $4.21 in the second quarter of 2021 on July 20 as the aviation service provider continues to be negatively impacted by the ongoing COVID-19 pandemic and renewed travel restrictions.

However, that would represent a year-over-year improvement of about 55% from -$9.31 per share seen in the same quarter a year ago.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 20

Ticker Company EPS Forecast
DOV Dover $1.82
OMC Omnicom $1.38
SBNY Signature Bank $3.14
PM Philip Morris International $1.54
HCA HCA $3.16
SYF Synchrony Financial $1.38
KEY KEY $0.54
ALLY Ally Financial $1.50
MAN ManpowerGroup $1.41
GATX GATX Corp $1.03
BMI Badger Meter $0.46
ONB Old National Bancorp $0.40
FMBI First Midwest Bancorp $0.38
NFLX Netflix $3.18
CNI Canadian National Railway USA $1.49
CMG Chipotle Mexican Grill $6.50
IBKR Interactive Brokers $1.03
UAL United Airlines Holdings -$4.21
PNFP Pinnacle Financial Partners $1.44
RXN Rexnord $0.50
UCBI United Community Banks $0.62
SNBR Scs Group Plc $1.07
FULT Fulton Financial $0.33
RUSHA Rush Enterprises $0.79
ISRG Intuitive Surgical $3.07
UBS UBS Group $0.42
TRV Travelers Companies $2.38
HAL Halliburton $0.22
CFG Citizens Financial $1.10
SNV Synovus Financial $1.03
IRDM Iridium Communications -$0.06
NEOG Neogen $0.14
EXPO Exponent $0.42
RNST Renasant $0.77

Wednesday (July 21)

IN THE SPOTLIGHT: COCA-COLA

The world’s largest soft drink manufacturer is expected to report its second-quarter earnings of $0.56 per share, which represents year-over-year growth of over 30% from $0.42 per share seen in the same quarter a year ago. The company’s revenue would grow over 30% to $9.4 billion.

“We are Overweight Coca-Cola (KO) after significant stock underperformance given COVID impacts on KO’s on-premise eating / drinking out business (~40% of sales) and gas & convenience (~10%) with gov’t mandated restaurant closures and reduced foot traffic. COVID impacts drove a large -9% organic sales decline in 2020, but we forecast a recovery to ~8% organic growth in 2021/2022 with a post-COVID recovery in away-from-home,” noted Dara Mohsenian, equity analyst at Morgan Stanley.

“We believe Coke’s LT topline growth outlook is above peers, with strong pricing power, and favorable strategy tweaks under Coke’s CEO, including increased innovation and a cultural shift towards a total beverage company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 21

Ticker Company EPS Forecast
JNJ Johnson & Johnson $2.29
ASML ASML $2.98
KO Coca-Cola $0.56
ANTM Anthem $6.34
NDAQ Nasdaq Omx $1.72
RCI Rogers Communications USA $0.62
NTRS Northern $1.71
BKR Baker Hughes Co $0.16
MTB M&T Bank $3.65
MKTX MarketAxess $1.72
LAD Lithia Motors $6.01
HOG Harley Davidson $1.21
BOKF BOK Financial $1.83
STX Seagate Technology $1.84
KNX Knight Transportation $0.88
CCI Crown Castle International $0.68
CSX CSX $0.37
DFS Discover Financial Services $4.01
EFX Equifax $1.71
GL Globe Life Inc $1.83
LVS Las Vegas Sands -$0.15
SEIC SEI Investments $0.91
WHR Whirlpool $5.95
GGG Graco $0.61
REXR Rexford Industrial Realty $0.09
OMF OneMain Holdings $2.12
THC Tenet Healthcare $1.07
FR First Industrial Realty $0.22
SLM SLM $0.37
LSTR Landstar System $2.33
SLG SL Green Realty $0.17
VMI Valmont Industries $2.50
RLI RLI $0.75
UFPI Universal Forest Products $1.56
STL Sterling Bancorp $0.50
UMPQ Umpqua $0.45
FTI FMC Technologies -$0.01
CNS Cohen & Steers $0.82
MC Moelis & Company $0.83
TCBI Texas Capital Bancshares $1.24
BXS BancorpSouth $0.67
PLXS Plexus $0.91
NVS Novartis $1.54
SAP SAP $1.44
TXN Texas Instruments $1.83
EBAY eBay $0.95
KMI Kinder Morgan $0.19
URI United Rentals $4.90
IPG Interpublic Of Companies $0.43
FNF Fidelity National Financial $1.41
CMA Comerica $1.60
MTG MGIC Investment $0.42
FCFS FirstCash $0.60
CVBF CVB Financial $0.35
PTC PTC $0.63
PPERY PT Bank Mandiri Persero TBK $0.18

Thursday (July 22)

IN THE SPOTLIGHT: TWITTER, INTEL

TWITTER: The online social media company that enables users to send and read short 140-character messages called “tweets”, is expected to report its second-quarter earnings of $0.07 per share, which represents year-over-year growth of over 105% from a loss of -$0.16 per share seen in the same quarter a year ago.

The San Francisco, California-based company would post revenue growth of about 55% to $1.06 billion.

“Lack of Negative Revisions and Relative Valuation: Valuation continues to be expensive, but we think investors are likely to continue to pay a premium for TWTR given 1) continued turnaround progress and 2) platform scarcity,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Execution Risk Remains Around Driving Advertiser ROI: Advertiser ROI has clearly improved on Twitter, but the company needs to improve ad targeting and measurability to compete with the larger players. To do that it will have to further personalize the content that users see and use its data more effectively, both of which remain key strategic challenges (and priorities) for management.”

INTEL: The California-based multinational corporation and technology company is expected to report its second-quarter earnings of $1.07 per share, which represents a year-over-year decline of about 14% from $1.23 per share seen in the same quarter a year ago. The company’s revenue would fall over 10% to $17.73 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 22

Ticker Company EPS Forecast
ULVR Unilever £1.29
PSON Pearson £8.40
ABB ABB $0.36
CBSH Commerce Bancshares $1.02
DOW Dow Chemical $2.36
DHR Danaher $2.05
FITB Fifth Third Bancorp $0.81
FAF First American Financial $1.70
RS Reliance Steel & Aluminum $4.73
T AT&T $0.79
WBS Webster Financial $0.99
UNP Union Pacific $2.54
BKU BankUnited $0.86
SNA Snap-On $3.21
ABT Abbott $1.02
NEM Newmont Mining $0.81
MMC Marsh & McLennan Companies $1.42
BIIB Biogen $4.60
TRN Trinity Industries $0.09
DGX Quest Diagnostics $2.86
ALLE Allegion $1.30
CLF Cliffs Natural Resources $1.52
TPH Tri Pointe Homes $0.81
VLY Valley National Bancorp $0.29
EWBC East West Bancorp $1.39
DHI DR Horton $2.82
SON Sonoco Products $0.86
POOL Pool $5.49
WSO Watsco $3.01
SAFE 3 Sixty Risk $0.33
CSL Carlisle Companies $2.22
WRB W.R. Berkley $0.98
SAM Boston Beer $6.69
SIVB SVB Financial $6.42
CE Celanese $4.34
RNR Renaissancere $4.62
TWTR Twitter $0.07
INTC Intel $1.07
WSFS Wsfs Financial $0.90
GBCI Glacier Bancorp $0.72
ABCB Ameris Bancorp $1.20
OZK Bank Ozk $0.92
ASB Associated Banc $0.47
FFBC First Financial Bancorp $0.52
VICR Vicor $0.33
VRSN Verisign $1.36
COF Capital One Financial $4.57
INDB Independent Bank $1.08
ASR Grupo Aeroportuario Del Sureste $36.49
SKX Skechers USA $0.51
RHI Robert Half International $1.05
FE FirstEnergy $0.57
SNAP Snap -$0.18
AEP American Electric Power $1.12
LUV Southwest Airlines -$0.27
AAL American Airlines -$2.12
DPZ Dominos Pizza $2.86
ALK Alaska Air -$0.62
NUE Nucor $4.76
BX Blackstone $0.78
FCX Freeport-McMoran $0.75
SASR Sandy Spring Bancorp $1.20
GPC Genuine Parts $1.52
ORI Old Republic International $0.53
HTH Hilltop $1.03
CROX Crocs $1.54
BCO Brinks $0.98
FFIN First Financial Bankshares $0.38
CNA Centrica £1.80

Friday (July 23)

Ticker Company EPS Forecast
HON Honeywell International $1.94
SLB Schlumberger $0.26
AXP American Express $1.63
KMB Kimberly Clark $1.74
NEP Nextera Energy Partners $0.61
ROP Roper Industries $3.67
RF Regions Financial $0.53
NEE NextEra Energy $0.69
AIMC Altra Industrial Motion $0.81
GNTX Gentex $0.44
FBP First Bancorp FBP $0.22
VTR Ventas -$0.08
GT Goodyear Tire & Rubber $0.16
ACKAY Arcelik ADR $0.48
MGLN Magellan Health $0.60
SXT Sensient Technologies $0.78

 

U.S. Tech Companies Disappointed with DACA Ruling, Urge Congress to Act

U.S. District Judge Andrew Hanen on Friday sided with a group of states suing to end the Deferred Action for Childhood Arrivals (DACA) program, arguing that it was illegally created by former President Barack Obama in 2012.

“We have long argued in support of this program, filing an amicus brief in this case, and we are very disappointed by the decision (from the judge)”, Google spokesperson Jose Castaneda said.

“Dreamers and immigrants make the United States — and Twitter — better”, a spokesperson from social media platform Twitter said in an emailed statement.

Twitter, Google, Microsoft and Photoshop maker Adobe urged the U.S. Congress to come together to protect Dreamers, with Google saying they wanted DACA to be “cemented” into law.

Microsoft President Brad Smith said that the “disappointing” ruling created “uncertainty yet again for Dreamers.”

The judge ruled on Friday that the program violated the Administrative Procedure Act (APA) when it was created but said that since there were so many people currently enrolled in the program – nearly 650,000 – his ruling would be temporarily stayed for their cases and their renewal applications.

Biden, who was vice president when Obama created the program, has said he wants to create a permanent pathway to citizenship for DACA recipients, known as “Dreamers.”

On Saturday, Biden vowed to preserve the program that protects from deportation hundreds of thousands of immigrants brought to the U.S. as children, promising to appeal the judge’s ruling invalidating it and urging Congress to provide a path to citizenship.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Kanishka Singh in Bengaluru, Editing by Nick Zieminski)

Today’s Market Wrap Up and a Glimpse Into Friday

Stocks were mixed once again today, with the Dow Jones Industrial Average extending yesterday’s gains while the S&P 500 and Nasdaq ended slightly lower. The major indices remain within a stone’s throw of yet more records, but investors played it cautious amid more inflation talk out of the Federal Reserve.

Federal Reserve Chairman Jerome Powell expects that inflation will remain at lofty levels in the coming months before retreating. Investors are also worried about the fallout from the COVID-19 variant due to a surge in the number of cases, as it could trigger another round of lockdowns. The result is uncertainty, something that investors are not a fan of.

On a positive note, the number of jobless claims declined in June, as expected, to 360,000 from 386,000 in the previous week. Separately, bond king Jeffrey Gundlach, who is at the helm of DoubleLine Capital, warned on CNBC that the USD is doomed and will decline “pretty substantially” in the “intermediate-term” due to deficits.

Stocks to Watch

PayPal has bolstered its weekly cryptocurrency purchase cap to USD 100K. So far the stock is not reacting and is down fractionally in extended-hours trading.

On the meme stock front, AMC Entertainment regained some ground, rising close to 8% on the day. The stock is up another 8% in after-hours trading as investors look to turn what has been a sinking ship lately around.

GameStop shares were under pressure during the regular session as Netflix strengthens its gaming offering. Shares of GameStop took back some ground in the extended hours, however, gaining 3%. The company announced that investors could pre-order the Nintendo Switch OLED, which will make its debut in October.

Twitter is gearing up for its earnings report this week. Investors punished the stock as the company tweaks its timeline dashboard. Investors celebrated Jack Dorsey’s other company, Square. Dorsey revealed that Square is building an “open developer platform” dedicated to bitcoin.

Look Ahead

Retail sales for June are due out at 8:30 a.m. ET after falling 1.3% in May. Wells Fargo economists predict that retail sales climbed higher by 0.5%, excluding autos, in June. They are keeping an eye on spending trends at restaurants and bars to gauge the strength of the recovery in the services segment.

 

Twitter Loses Immunity Over User-Generated Content in India

By Aditya Kalra and Sankalp Phartiyal

The statement is the first time Prime Minister Narendra Modi’s administration has officially said Twitter has lost its immunity after repeatedly criticising the company for non-compliance.

The dispute and the public spat has raised concern that American firms will find it difficult to do business amid a more stringent regulatory environment.

India’s IT ministry told the High Court in New Delhi that Twitter’s non-compliance amounted to a breach of the provisions of the IT Act, causing the U.S. firm to lose its immunity, according to the filing dated July 5.

The filing came in a case filed by a Twitter user who wanted to complain about some allegedly defamatory tweets on the platform, and said the company was not complying with the new law that requires appointment of certain new executives.

Twitter declined to comment. The company has previously said it was making all efforts to comply.

India’s new IT rules which became effective end-May are aimed at regulating content on social media firms and making them more accountable to legal requests for swift removal of posts and sharing details on the originators of messages.

Technology minister Ravi Shankar Prasad has slammed Twitter for deliberately defying the law and said all social media firms must abide by the new rules.

In recent weeks, as acrimony grew between New Delhi and Twitter, Indian police have filed at least five cases against the company or its officials, including some related to child pornography and a controversial map of India on its career page.

Police in two Indian states have named Twitter India chief Manish Maheshwari in complaints. Separately, the state of Uttar Pradesh has challenged in the Supreme Court a bar on police action against Maheshwari, after a lower court protected him against arrest over an accusation that the platform was used to spread hate.

(Reporting by Aditya Kalra; Editing by Stephen Coates)

Will You Pay to Use Social Media? Twitter Launches Twitter Blue, its First Subscription Service

Social media companies mostly make their money from adverts. However, Twitter wants to change the game by launching a subscription service, and it is targeting over 300 million users over the coming years.

Twitter launches Twitter Blue

Leading social media company Twitter has launched Twitter Blue, its first subscription service. The company announced earlier today that the service is designed for power users willing to pay a monthly fee to gain access to exclusive features.

According to the company, the service is currently available to users in Canada and Australia. Twitter charges $3.49 (Canada) and $4.49 (Australia) in local currencies per month. However, it didn’t reveal when the service would be available to US users.

Per the announcement, the Twitter Blue service will come with an Undo Tweet feature, allowing users to set a customizable timer of up to 30 seconds to reverse a tweet if the user needs to fix it before tweeting again. Although users requested an edit feature, the Undo Tweet feature works differently. The feature allows subscribers to preview the nature of their tweets and adjust them before publishing.

Twitter added that the service contains other features such as a reader mode, bookmark folders, customize the Twitter app icons on mobile phones, dedicated customer support, and access to color themes for the app.

The company’s stock price went up by 1.3% during the pre-market trading session. The rally has continued, as investors positively welcomed this latest development.

TWTR/USD chart. Source: FXEMPIRE
TWTR/USD chart. Source: FXEMPIRE

Will users pay to use social media?

At the start of the year, Twitter set the goal of reaching 315 million monetizable daily active users before the end of 2023. It also wants to double its annual revenue to $7.5 billion by that time as Twitter makes generates of its money via advertising.

Traditionally, social media companies like Twitter and Facebook make most of their money from advertising. In fact, advertising currently makes up 86% of Twitter’s revenue. However, the social media company is looking to diversify its revenue source.

A large percentage of the people who use social media platforms use them for free. Hence, the idea of paying to enjoy special features such as the Undo Tweet might take a while for users to catch on to. The market is still new, and it might take a while before people decide if they will pay for social media services or not.

Twitter Says Concerned About India Staff Safety After Police Visit

By Sankalp Phartiyal

Indian police on Monday visited a Twitter office to serve a notice to the micro-blogging firm’s country head for a probe into its tagging of a tweet by a ruling party spokesman as “manipulated media”.

Without directly referring to the Delhi police action, Twitter said: “We, alongside many in civil society in India and around the world, have concerns with regards to the use of intimidation tactics by the police in response to enforcement of our global Terms of Service.”

Leaders of Prime Minister Narendra Modi’s Bharatiya Janata Party recently shared portions of a document on Twitter they said was created by the main opposition Congress party and highlighted government failures in handling the COVID-19 pandemic.

Congress complained to Twitter saying the document was fake, after which Twitter marked some of the posts as “manipulated media”.

Delhi Police declined to comment.

Twitter has been battling with the Indian government since February after the technology ministry asked it to block content alleging Modi’s administration was trying to silence criticism related to farmer protests in the country.

Following that showdown, India announced new IT rules that aim to make social media firms more accountable to legal requests for swift removal of posts. On Thursday, Twitter urged the technology ministry to give it three more months to comply with the new content regulation rules, which include the appointment of an Indian grievance officer to deal with complaints. Twitter said it was very concerned the rules made the compliance officer criminally liable for content on the platform, adding the move represented a dangerous overreach.

India’s technology ministry did not immediately respond to a request for comment.

The new IT rules have spurred legal battles, including a lawsuit filed by Facebook-owned WhatsApp this week which calls out India’s government for exceeding its legal powers by enacting rules that will force the messaging app to break end-to-end message encryption.

(Reporting by Sankalp Phartiyal; Editing by Aditya Kalra and Lincoln Feast.)

Twitter Could Sell Off Into the 40s

Twitter Inc. (TWTR) sold off more than 15% at the end of April after posting weak Q1 2021 earnings and dropped to the lowest low since January this week, closing under the critical 200-day moving average for the fifth day in a row. A market wide decline generated most of downside but outrage following a report that Facebook Inc. (FB) would release an Instagram for children contributed to bearish sector sentiment.

Weaker Than Expected User Growth

Along with Facebook and Alphabet Inc. (GOOG), Twitter performance is levered to advertising revenue that’s projected to grow rapidly as U.S. and world economies emerge from the pandemic. However, user growth appears to be stumbling as customers return to normalcy, potentially forcing these issues to miss lofty quarterly estimates. April earnings stoked those fears, with weaker than expected Q1 user growth and lower Q2 guidance.

CEO Ned Segal noted after the report that Twitter grew 30% on an annualized basis in Q1 and now expects Q2, Q3, and Q4 to book “low double digit growth with the low point in Q2”. This outlook isn’t too exciting, given rapid 2020 growth as a result of lockdowns and a hotly-contested presidential election. It’s even worse after months of bullish hype about a new ad platform that was expected to bring profits closer to deeper-pocketed rivals.

Wall Street and Technical Outlook

Wall Street remains skeptical about the long-term outlook, posting a consensus ‘Hold’ rating based upon 10 ‘Buy’, 1 ‘Overweight’, and 27 ‘Hold’ recommendations. In addition, four analysts now recommend that shareholders close positions and move to the sidelines. Price targets currently range from a low of $30 to a Street-high $83 while the stock is set to open Wednesday’s session about $13 below the median $65 target.

Twitter came public in the 40s in 2013 and topped out in the 70s in early 2014. The subsequent decline ended in 2017, yielding a two-legged advance that finally reached the prior high in February 2021. The subsequent breakout failed, yielding a double top pattern that broke to the downside in April. The stock is now trading below the 200-day moving average for the first time since July 2020, fully engaged in a downtrend that could reach eventually support in the 40s.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Facebook Trading Lower After Citi Downgrade

Facebook Inc. (FB) is trading near a weekly low on Monday after Citi analyst Jason Bazinet downgraded the social media giant from ‘Buy’ to ‘Neutral’, insisting that Wall Street is “overly bullish on the growth potential of the advertising market”. The stock has sold off more than 1% in the pre-market and is pressing against a trading floor near 315, with a breakdown favoring a critical test of April breakout support at 303.

Politics and Advertising

The company is highly dependent on advertising revenue to meet quarterly revenue guidance, vulnerable to cyclical forces that can impact a broad spectrum of marketing decisions. The stock is trading near an all-time high even though the pandemic is still taking a bite out of ad purchases while stubbornly high unemployment rates and slow vaccine uptake in other parts of the world could defer the much-heralded ‘return to normalcy’ until 2022.

Facebook is also a prime political target due to its massive footprint and engagement in questionable censorship practices. Along with Alphabet Inc. (GOOG) and Twitter Inc. (TWTR), Republicans have accused CEO Zuckerberg and Co. of selective censorship under the broad spectrum of ‘misinformation’.  Unfortunately, they’re finding few friends on the other side of the aisle, with Democrats opening investigations on monopolistic behavior.

Wall Street and Technical Outlook

Wall Street continues to ignore the political intrigue, yielding a ‘Buy’ rating based upon 39 ‘Buy’, 4 ‘Overweight’, 6 ‘Hold’, and 1 ‘Sell’ recommendation. Price targets currently range from a low of $225 to a Street-high $460 while the stock is set to open Monday’s session $70 below the median $395 target. This low placement suggests Main Street is taking the political controversy more seriously than the denizens of lower Manhattan.

Facebook rallied above 2018 resistance near 200 in May 2020 and entered a strong uptrend that topped out at 303.60 in September. The subsequent correction found support at the 200-day moving average in January 2021, yielding a bounce that mounted the 2020 peak in March. It posted an all-time high at 329.82 in April and turned lower once again, dropping about halfway down to breakout support. A test at that level should offer a low risk buying opportunity unless another round of political conflict hits the 24-hour news cycle.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Twitter Acquires News Startup Scroll in Push for Subscriptions

By Sheila Dang

Twitter has been working to offer new types of content on its social media site, including audio and long-form content, after previously acquiring newsletter platform Revue.

Scroll allows users to subscribe and read news articles from publishers including Insider, BuzzFeed and USA Today without ads. The company says publishers who work with Scroll earn more money than they would by selling advertising.

The deal will help Twitter build a subscription feature, such as letting users access premium features from news outlets or a writer’s Revue newsletter, Twitter added.

Financial terms of the deal were not disclosed.

(Reporting by Sheila Dang. Editing by Mark Potter)

Why Shares Of Twitter Are Down By 13% Today?

Twitter Video 30.04.21.

Twitter Stock Dives As Quarterly Report Fails To Meet Traders’ Expectations

Shares of Twitter found themselves under significant pressure after the company released its quarterly earnings report. Twitter reported revenue of $1.04 billion and GAAP earnings of $0.08 per share, beating analyst estimates on both earnings and revenue.

The company stated that average monetizable daily active users totaled 199 million, which was mostly in line with the analyst consensus.

In the second quarter of 2021, Twitter expects to record revenue of $980 million – $1.08 billion and GAAP operating loss of $170 million – $120 million. Twitter does not expect to grow its revenue in the second quarter, and it looks that the market was not ready for this lack of growth after strong earnings reports from other tech companies.

What’s Next For Twitter?

While Twitter managed to beat analyst estimates, it has clearly missed traders’ expectations. The stock had a strong start of the year as traders bet that digital trends accelerated by the pandemic will help company grow at a fast pace.

Unfortunately for Twitter bulls, the company does not expect to increase its revenue in the second quarter, which is a strong bearish catalyst for a tech company in today’s market environment.

Analysts expect that Twitter will report earnings of $0.91 per share in 2021 and $1.23 per share in 2022, so the stock is trading at a forward P/E of 46 at current price levels. This is a rich valuation so Twitter should show the market how it will return to fast growth or the stock will find itself under more pressure.

It should be noted that analysts have already rushed to cut their price targets for Twitter stock, but most targets remain far above from current levels which means that analysts believe that the stock is a buy. While analysts remain optimistic, it remains to be seen whether Twitter shares will attract speculative traders who will be ready to buy the dip in the near term.

For a look at all of today’s economic events, check out our economic calendar.

Twitter Q1 Earnings and Revenue to Rise 27%; Target Price $75

Twitter, an online social media company that enables users to send and read short 140-character messages called “tweets”, is expected to report its first-quarter earnings of $0.14 per share, which represents year-over-year growth of over 27% from $0.11 per share seen in the same quarter a year ago.

The San Francisco, California-based company would post revenue growth of 27% for the quarter ended March 2021.

“We expect solid 1Q21 results, key focus areas at the print will include (i) DAU growth trends, which decelerated slightly to +27% y/y in 4Q; (ii) Top-line trends, including commentary on Direct Response ads/results of the newly re-launched MAP product. We raised ’21-’26 revenue and EBITDA following the bullish multi-year guide at Twitter’s (TWTR) analyst day, price target to $68 from $58, maintain Market Perform,” noted John Blackledge, equity analyst at Cowen.

“We estimate total revenue of $1.03BN for 1Q21, +27.9% y/y, vs. guidance of $940MM-$1.04BN, and ~1% above consensus. We forecast TWTR’s reported ad revenue to grow 31.5% y/y 1Q21 vs. reported growth of +0.4% y/y in 1Q20 and 30.5% growth in 4Q20; our forecast comprises a ~30.8% US adv. growth, slightly below our est. for ~32.4% growth in Int’l adv.”

Twitter shares rose about 23% so far this year. At the time of writing, the stock was trading 1.40% lower at $66.08 on Monday.

Twitter Stock Price Forecast

Thirty-four analysts who offered stock ratings for Twitter in the last three months forecast the average price in 12 months of $75.78 with a high forecast of $112.00 and a low forecast of $52.00.

The average price target represents a 14.51% increase from the last price of $66.18. Of those 34 analysts, 14 rated “Buy”, 19 rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $68 with a high of $91 under a bull scenario and $52 under the worst-case scenario. The firm gave an “Equal-weight” rating on the social media company’s stock.

“Lack of Negative Revisions and Relative Valuation: Valuation continues to be expensive, but we think investors are likely to continue to pay a premium for TWTR given 1) continued turnaround progress and 2) platform scarcity,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Execution Risk Remains Around Driving Advertiser ROI: Advertiser ROI has clearly improved on Twitter, but the company needs to improve ad targeting and measurability to compete with the larger players. To do that it will have to further personalize the content that users see and use its data more effectively, both of which remain key strategic challenges (and priorities) for management.”

Several other analysts have also updated their stock outlook. Twitter had its price objective raised by Argus to $82 from $72. The brokerage currently has a buy rating on the social networking company’s stock. Truist upgraded Twitter from a hold rating to a buy rating and increased their price objective to $74 from $64.

Moreover, BMO Capital Markets raised their price target to $75 from $45 and gave the stock a market performance rating. Susquehanna raised their price target to $70 from $58 and gave the stock a positive rating. Susquehanna Bancshares raised their price target to $70 from $58 and gave the stock a positive rating.

Check out FX Empire’s earnings calendar

Earnings to Watch Next Week: Tesla, Alphabet, Microsoft, Facebook, Apple and Amazon.com in Focus

Earnings Calendar For The Week Of April 26

Monday (April 26)

IN THE SPOTLIGHT: TESLA

The California-based electric vehicle and clean energy company Tesla is expected to report its first-quarter earnings of $0.79 per share, which represents year-over-year growth of over 240% from $0.23 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer’s revenue would grow over 70% to $10.2 billion. The electric vehicle producer has beaten earnings per share and revenue estimates by over 60% of the time in the last two years.

“Updating the model for the 1Q deliveries of 184,800 which were over 20% above our forecast. We also made adjustments to our volume forecasts for the remainder of the year to account for the strong start while allowing for potential supply constraints and other factors. The net result is we raise our FY21 delivery forecast by 3% to 809k units,” noted Adam Jonas, equity analyst at Morgan Stanley.

“We note our FY volume is modestly below consensus as we allow for a ‘margin of safety’ given highly fluid supply chain issues impacting the industry. Our forward year volume forecast increases very slightly (approx. 1%) to 1.1mm units. This impact, along with some other minor adjustments to the model lifts our target to $900 from $880 previously. We do not change our bull or bear case valuations at this time.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 26

Ticker Company EPS Forecast
CBU Community Bank System $0.81
BOH Bank of Hawaii $1.18
DORM Dorman Products $1.02
FBP First Bancorp FBP $0.24
PHG Koninklijke Philips $0.29
OTIS Otis Worldwide Corp $0.62
CHKP Check Point Software Technologies $1.49
LII Lennox International $1.29
ACI AltaGas Canada $0.50
CAJ Canon $0.24
TSLA Tesla $0.79
RRC Range Resources $0.27
HTLF Heartland Financial USA $1.14
OMF OneMain Holdings $2.04
AXTA Axalta Coating Systems $0.42
AMKR Amkor Technology $0.41
TNET TriNet $1.32
SSD Simpson Manufacturing $0.92
PCH Potlatch $1.71
WRI Weingarten Realty Investors $0.41
CATY Cathay General Bancorp $0.78
IBTX Independent Bank $1.30
JJSF J&J Snack Foods $0.12
AIN Albany International $0.62
CNI Canadian National Railway USA $0.99
NXPI NXP Semiconductors $2.21
SBAC SBA Communications $2.45
AMP Ameriprise Financial $4.73
ARE Alexandria Real Estate Equities $1.85
SSNC SS&C Technologies $1.10
SUI Sun Communities $1.16
BRO Brown & Brown $0.56
PKG Packaging Of America $1.47
UHS Universal Health Services $2.15
MKSI MKS Instruments $2.17
AGNC American Capital Agency $0.64
CDNS Cadence Design Systems $0.74
MASI Masimo $0.88
RMBS Rambus $0.28
WWD Woodward $0.80
SANM Sanmina $0.82
TOP Topdanmark A/S kr5.74
KOF Coca Cola Femsa Sab De Cv $13.82
BAYRY Bayer AG PK $0.77
FIX Comfort Systems USA $0.56
SCCO Southern Copper $0.85
AMG Affiliated Managers $4.26
TV Grupo Televisa Sab $0.10
EGOV NIC $0.23
TOWN Townebank $0.65

Tuesday (April 27)

IN THE SPOTLIGHT: ALPHABET, MICROSOFT

ALPHABET: The parent of Google and the world’s largest search engine that dominates internet search activity globally is expected to report its first-quarter earnings of $15.45 per share, which represents year-over-year growth of about 57% from $9.87 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 25% to around $42.2 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 25% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, April 27, would help the stock hit new all-time highs. Alphabet shares surged more than 30% so far this year. On Friday, the stock closed 2.1% higher at $2,299.93 – close to the record high of $2,304.09.

GOOGL still favorable set up after strong YTD gains. GOOGL has outperformed major indices YTD as investor sentiment turned positive. Our checks have been broadly positive, indicating accelerating momentum in the ad business and sustained strength in Cloud,” noted Brent Thill, equity analyst at Jefferies.

GOOGL remains a top large-cap pick as we believe it should benefit in 2021 from ad spend recovery, pent-up demand for Google Cloud, and call options on Waymo and other non-advertising initiatives.”

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal third-quarter earnings of $1.76 per share, which represents year-over-year growth of over 25% from $1.40 per share seen in the same quarter a year ago. The world’s largest software maker’s revenue would rise over 17% to around $41 billion, up from the $35.02 billion a year earlier.

“An improving spending environment drives several sources of potential upside to Q3, most prominently around the hybrid cloud engine (Azure + Server Products) and Windows OEM. Strong positioning for multiple secular trends and an attractive valuation make MSFT a Top Pick in Software,” noted Keith Weiss, equity analyst at Morgan Stanley.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 27

Ticker Company EPS Forecast
PCAR PACCAR $1.29
ENTG Entegris $0.72
NVS Novartis $1.57
CROX Crocs $0.88
MMM 3M $2.25
MSCI Msci $2.29
JBLU JetBlue Airways -$1.68
PII Polaris Industries $1.54
GLW Corning $0.42
HAS Hasbro $0.66
AWI Armstrong World Industries $0.96
UBS UBS Group $0.52
ABB ABB $0.28
BP BP $0.43
UPS United Parcel Service $1.63
ST Sensata Technologies $0.74
CNC Centene $1.65
SYF Synchrony Financial $1.50
IVZ Invesco $0.62
TRU TransUnion $0.80
SCL Stepan $1.43
FELE Franklin Electric $0.39
RTX Raytheon Technologies Corp $0.88
ABG Asbury Automotive $3.58
LECO Lincoln Electric $1.18
ROP Roper Industries $3.32
SHW Sherwin-Williams $1.65
DTE DTE Energy $2.09
FISV Fiserv $1.13
MMC Marsh & McLennan Companies $1.70
GE General Electric $0.02
WM Waste Management $1.00
CEQP Crestwood Equity Partners $0.34
LLY Eli Lilly $2.12
ADM Archer-Daniels Midland $1.00
ECL Ecolab $0.82
PHM PulteGroup $1.19
HUBB Hubbell $1.67
PPBI Pacific Premier Bancorp $0.63
SSTK Shutterstock $0.70
UMBF UMB Financial $1.47
GPK Graphic Packaging $0.25
PSB PS Business Parks $1.67
RNST Renasant $0.63
CHE Chemed $4.20
MANH Manhattan Associates $0.32
USNA USANA Health Sciences $1.58
TXN Texas Instruments $1.56
SYK Stryker $1.98
MDLZ Mondelez International $0.69
MXIM Maxim Integrated Products $0.75
COF Capital One Financial $4.17
TER Teradyne $1.04
PFG Principal Financial $1.35
APAM Artisan Partners Asset Management $1.10
CALX Calix $0.20
VALE Vale $1.01
MATX Matson $1.86
AMGN Amgen $4.00
EIX Edison International $0.67
ENPH Enphase Energy $0.41
SBUX Starbucks $0.52
ATRC AtriCure -$0.41
AMD Advanced Micro Devices $0.44
TRMK Trustmark $0.61
EGP EastGroup Properties $1.39
WSBC WesBanco $0.70
ROIC Retail Opportunity Investments $0.24
OKE ONEOK $0.77
IEX IDEX $1.41
V Visa $1.27
NOV National Oilwell Varco -$0.23
CSGP CoStar $2.40
OLN Olin $1.34
MSFT Microsoft $1.76
BYD Boyd Gaming $0.44
ESS Essex Property $3.04
EQR Equity Residential $0.68
TX Ternium $2.29
EHC Encompass Health Corp $0.80
GOOGL Alphabet $15.45
QTS QTS Realty $0.65
BXP Boston Properties $1.55
UDR UDR $0.48
FTI FMC Technologies -$0.08
GOOG Alphabet $15.45
CHRW C.H. Robinson Worldwide $0.97
FFIV F5 Networks $2.39
FEYE FireEye $0.07
CB Chubb $2.45
TENB Tenable Holdings Inc $0.06
ILMN Illumina $1.36
NAVI Navient $0.78
HIW Highwoods Properties $0.87
AAT American Assets $0.35
JNPR Juniper Networks $0.25
ACGL Arch Capital $0.50
FIBK First Interstate BancSystem $0.73
NCR NCR $0.47
TKC Turkcell $0.17
AJRD Aerojet Rocketdyne $0.46
ZBRA Zebra Technologies $4.39
MKL Markel $12.29
AMX America Movil Sab De Cv Amx $0.33
MSTR Microstrategy -$0.19
VIST Vista Oil Gas $0.07
IBA Industrias Bachoco Sab De Cv $1.54
BSBR Banco Santander Brasil $0.19
SAN Banco Santander $0.11
OMAB Grupo Aeroportuario Del Centro Nort $0.37
NMR Nomura -$0.21
IRBT Irobot $0.06
HSBC HSBC $0.60
ATLCY Atlas Copco ADR $0.40

Wednesday (April 28)

IN THE SPOTLIGHT: FACEBOOK, APPLE

FACEBOOK: The world’s largest online social network is expected to report its first-quarter earnings of $2.35 per share, which represents year-over-year growth of over 37% from $1.71 per share seen in the same quarter a year ago.

The Menlo Park, California-based social media conglomerate would post revenue growth of over 33% to around $23.6 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 22% in the last four quarters.

“Monetization Potential: We are positive on FB’s monetization roll-out of Instagram as well as FB’s ability to continue to innovate and improve its monetization (Canvas Ads, Dynamic Ads, video). Combined with the high and growing engagement we see monetization upside going forward,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Investing from Position of Strength to Drive Faster Long-Term Growth: We are modeling ~28% GAAP opex (excl. one-time items) growth in 2021, implying an incremental ~$15bn in opex. Our base case model implies opex per employee moderates in ’21 while FB hiring remains roughly flat on an absolute basis. We believe FB will grow EPS at a ~29% CAGR (2019-2022).”

APPLE: The consumer electronics giant would post its second-quarter earnings of $0.99 per share, which represents year-over-year growth of over 54% from $0.64 per share seen in the same quarter a year ago. The iPhone manufacturer would post revenue growth of over 33% to around $77.6 billion.

“We expect the strength of Apple’s broad portfolio of products & services to help re-rate AAPL shares, amplified by today’s product launch event. We forecast Product growth of 43% Y/Y and Services growth of 19% putting us at $80.2B in revs and $1.03 in EPS for the March Q, 4-5% ahead of consensus,” noted Katy Huberty, equity analyst at Morgan Stanley.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 28

Ticker Company EPS Forecast
SHOO Steven Madden $0.19
IPG Interpublic Of Companies $0.16
SNY Sanofi $0.83
GD General Dynamics $2.31
APH Amphenol $0.44
SIRI Sirius XM $0.06
LIVN LivaNova PLC $0.15
SLAB Silicon Laboratories $0.76
HUM Humana $7.21
AVY Avery Dennison $2.01
OSK Oshkosh $1.14
NYCB New York Community Bancorp $0.27
DAN Dana $0.46
MAS Masco $0.66
TEVA Teva Pharmaceutical Industries $0.58
ETR Entergy $1.24
BA Boeing -$1.17
EVR Evercore Partners $2.63
ROL Rollins $0.11
YUM Yum Brands $0.85
PAG Penske Automotive $1.81
BCO Brinks $0.71
R Ryder System $0.58
CIT CIT $0.98
TDY Teledyne Technologies $2.59
TKR Timken $1.20
OC Owens Corning $1.42
SAIA Saia $1.37
SWK Stanley Black & Decker $2.56
MCO Moody’s $2.80
PB Prosperity Bancshares $1.38
BSX Boston Scientific $0.30
GIB CGI Group USA $1.03
CME CME $1.75
ROK Rockwell Automation $2.15
SPOT Spotify -$0.57
GRMN Garmin $0.88
SIX Swiss Exchange -$1.29
IART Integra LifeSciences $0.56
BPOP Popular, Inc. $1.91
BXMT Blackstone Mortgage $0.61
AER AerCap $1.13
LFUS Littelfuse $1.92
VRT Veritas Pharma $0.12
SLGN Silgan $0.71
HELE Helen Of Troy $1.56
HES Hess $0.36
ADP ADP $1.82
NSC Norfolk Southern $2.55
SC Santander Consumer USA $1.45
RJF Raymond James Financial $2.09
PPC Pilgrim’s Pride $0.27
PSA Public Storage $2.70
FORM FormFactor $0.39
PTC PTC $0.72
EQIX Equinix $6.63
VVV Valvoline Inc $0.37
ESI Itt Educational Services $0.32
MXL MaxLinear $0.50
CLR Continental Resources $0.30
BSMX Santander Mexico Fincl Gp Sab Decv $0.17
PDM Piedmont Office Realty $0.47
WCN Waste Connections $0.67
AVB AvalonBay Communities $1.94
PGRE Paramount Group $0.21
AGI Alamos Gold $0.13
EBAY eBay $1.07
MAA Mid-America Apartment Communities $1.61
OI Owens-Illinois $0.28
QCOM Qualcomm $1.67
ALGN Align Technology $2.00
DRE Duke Realty $0.39
NGVT Ingevity Corp $1.07
AZPN Aspen Technology $1.16
NLY Annaly Capital Management $0.26
FB Facebook $2.35
MC Moelis & Company $0.87
NOVA Nova Mentis Life Science Corp -$0.34
MGM MGM Resorts International -$0.86
MTH Meritage Homes $2.52
GRUB GrubHub $0.03
CNO CNO Financial Group $0.50
WERN Werner $0.63
CONE CyrusOne $0.98
AR Antero Resources $0.39
AMED Amedisys $1.43
KRC Kilroy Realty $0.99
EXR Extra Space Storage $1.48
AFL Aflac $1.20
AVT Avnet $0.56
BLKB Blackbaud $0.63
WELL Welltower Inc $0.75
TROX Tronox $0.27
AUY Yamana Gold USA $0.07
AM Antero Midstream Partners $0.22
CNMD CONMED $0.43
CHX ChampionX Corp $0.05
RE Everest Re $4.55
HOLX Hologic $2.62
CDE CoEUR Mining $0.08
MOH Molina Healthcare $3.78
TYL Tyler Technologies $1.31
AXS Axis Capital $0.65
SIGI Selective $0.97
NOW ServiceNow $1.34
CAKE Cheesecake Factory -$0.15
MUSA Murphy USA $0.83
MTDR Matador Resources $0.37
ALSN Allison Transmission $0.90
RNR Renaissancere $0.74
PEGA Pegasystems $0.02
CCS Century Communities $1.52
UCTT Ultra Clean $0.82
TTEK Tetra Tech $0.75
CINF Cincinnati Financial $1.27
F Ford Motor $0.15
ASGN On Assignment $1.10
AAPL Apple $0.99
WH Wyndham Hotels & Resorts Inc $0.25
ORLY O’Reilly Automotive $5.27
ISBC Investors Bancorp $0.29
LOGI Logitech Internationalusa $0.96
SID Companhia Siderurgica Nacional $0.28
YMZBY Yamazaki Baking ADR $1.17
GSK Glaxosmithkline $0.59
LPL Lg Display $0.29
TS Tenaris $0.06
TOTDY Toto $0.51
UMC United Microelectronics $0.10
ASX Advanced Semiconductor Engineering $0.12
DB Deutsche Bank $0.49
FNF Fidelity National Financial $1.28
WWW Wolverine World Wide $0.38
DISCA Discovery Communications $0.66
DISCB Discovery Communications Discb $0.66
DISCK Discovery Communications Disck $0.66
EAT Brinker International $0.79
FCNCA First Citizens Bancshares $12.11
PAC Grupo Aeroportuario Del Pacifico $0.64

Thursday (April 29)

IN THE SPOTLIGHT: AMAZON.COM

The eCommerce leader for physical and digital merchandise is expected to report its first-quarter earnings of $9.98 per share, which represents year-over-year growth of about 100% from $5.01 per share seen in the same quarter a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of about 40% to around $105.1 billion. It is worth noting that the company, on average, has delivered an earnings surprise of about 187% in the last four quarters.

“We expect strong 1Q21 results with revenue and Op Inc. 3% & 11% above consensus estimates. Key rev. drivers include eCommerce, AWS, Adv., & Sub. rev. Our 1Q21 Op Inc. est. is driven by AWS & Adv., offset partially by COVID-19 costs. 2Q21 revenue guide is key, we expect AMZN eCommerce growth of +15% y/y despite tough comps. We remain bullish on’21 Op margin expansion, our est. is 17% above consensus,” noted John Blackledge, equity analyst at Cowen.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 29

Ticker Company EPS Forecast
RDSA Royal Dutch Shell £0.83
AGIO Agios Pharmaceuticals -$1.23
STM Stmicroelectronics $0.39
JHG Janus Henderson Group PLC $0.82
THRM Gentherm $0.58
FBC Flagstar Bancorp $2.65
CAT Caterpillar $1.93
TFX Teleflex $2.44
CNX Consol Energy $0.28
CBRE CBRE Group Inc $0.70
AMT American Tower $2.32
BLMN Bloomin’ Brands $0.34
TREE LendingTree -$0.21
TAP Molson Coors Brewing -$0.12
MO Altria $1.04
SAH Sonic Automotive $0.94
TROW T. Rowe Price $2.90
VC Visteon $0.32
TW Towers Watson $0.43
HSY Hershey $1.82
CCOI Cogent Communications $0.18
KEX Kirby $0.14
SPGI S&P Global Inc $3.13
BAX Baxter International $0.64
SO Southern Co. $0.83
SWI Solarwinds $0.19
BGCP BGC Partners $0.19
COHU Cohu $0.79
CWT California Water Service -$0.06
CFR Cullen/Frost Bankers $1.42
LH Laboratory Of America $7.34
TMHC Taylor Morrison Home $0.76
GPI Group 1 Automotive $4.39
NEM Newmont Mining $0.80
FMX Fomento Economico Mexicano Sab $8.67
AOS A.O. Smith $0.56
WAB Westinghouse Air Brake Technologies $0.85
WEX WEX $1.58
COLB Columbia Banking System $0.63
WLTW Willis $3.26
PATK Patrick Industries $1.32
VLY Valley National Bancorp $0.29
MMP Magellan Midstream Partners $0.87
KHC Kraft Heinz $0.60
IP International Paper $0.59
BC Brunswick $1.45
KIM Kimco Realty $0.30
KDP Keurig Dr Pepper $0.31
TMO Thermo Fisher Scientific $6.69
EEFT Euronet Worldwide $0.35
MTSI MACOM Technology Solutions $0.47
EXLS ExlService $0.99
AIT Applied Industrial Technologies $0.98
COR CoreSite Realty $1.33
STRA Strayer Education $1.49
IDA IdaCorp $0.83
GNRC Generac $1.87
ALNY Alnylam Pharmaceuticals -$1.73
XEL Xcel Energy $0.61
AIMC Altra Industrial Motion $0.76
TPX Tempur Sealy International $0.51
OSTK Overstock $0.07
NOC Northrop Grumman $5.48
FCN FTI Consulting $1.18
MDC MDC $1.37
SYNH Syneos Health Inc $0.74
BMY Bristol-Myers Squibb $1.83
DPZ Dominos Pizza $2.94
ATI Allegheny Technologies -$0.24
CMCSA Comcast $0.59
CG Carlyle $0.54
MRK Merck & Co $1.62
PCG PG&E $0.27
MA Mastercard $1.57
MCD McDonalds $1.81
LKQ LKQ $0.63
CMS CMS Energy Corporation $1.19
AGCO AGCO $1.11
ICE Intercontinental Exchange $1.30
PH Parker-Hannifin $3.75
CFX Colfax $0.39
BCE BCE (USA) $0.58
EME EMCOR $1.17
ABMD Abiomed $1.10
ERJ Embraer -$0.33
TXT Textron $0.47
CARR Carrier Global Corp $0.38
PRFT Perficient $0.68
KBR KBR $0.46
CHD Church Dwight $0.80
WST West Pharmaceutical Services $1.42
ADS Alliance Data Systems $3.23
CTXS Citrix Systems $1.42
NVT nVent Electric PLC $0.35
CUZ Cousins Properties $0.70
RMD ResMed $1.22
CUBE CubeSmart $0.45
TXRH Texas Roadhouse $0.59
GLPI Gaming And Leisure Properties $0.83
KLAC KLA-Tencor $3.59
OFC Orate Office Properties $0.55
FIVN Five9 $0.13
TEX Terex $0.22
X United States Steel $0.91
CRUS Cirrus Logic $0.69
SWKS Skyworks Solutions $2.34
WDC Western Digital $0.67
SWN Southwestern Energy $0.25
ACHC Acadia Healthcare $0.45
DLR Digital Realty $1.57
BVN Compania De Minas Buenaventura $0.11
GILD Gilead Sciences $2.02
AEM Agnico Eagle Mines USA $0.57
COLM Columbia Sportswear $0.33
TWTR Twitter $0.14
AJG Arthur J. Gallagher $1.83
FHI Federated Hermes Inc $0.77
PEB Pebblebrook Hotel -$0.44
CWST Casella Waste Systems $0.04
CXP Columbia Property $0.33
CPT Camden Property $1.23
COG Cabot Oil Gas $0.33
SGEN Seattle Genetics -$0.59
ATR AptarGroup $0.90
LPLA LPL Financial $1.58
EVTC Evertec $0.53
EXPO Exponent $0.43
DXCM Dexcom $0.31
ZEN Zendesk $0.12
PFPT Proofpoint $0.39
THG Hanover $0.75
FSLR First Solar $1.00
FBHS Fortune Brands Home Security $1.04
FWRD Forward Air $0.56
MMSI Merit Medical Systems $0.37
SPSC SPS Commerce $0.38
INT World Fuel Services $0.28
SKYW SkyWest $0.89
ERIE Erie Indemnity $1.41
POWI Power Integrations $0.55
ROG Rogers $1.79
OMCL Omnicell $0.67
BIO Bio-Rad Laboratories $2.50
HIG Hartford Financial Services $0.75
EMN Eastman Chemical $1.91
HP Helmerich & Payne -$0.61
EBS Emergent BioSolutions $1.55
PACB Pacific Biosciences Of California -$0.45
AMZN Amazon $9.98
FTNT Fortinet $0.74
NATI National Instruments $0.31
ALGT Allegiant Travel -$2.59
FTV Fortive Corp $0.60
MHK Mohawk Industries $2.80
BMRN BioMarin Pharmaceutical $0.27
VRTX Vertex Pharmaceuticals $2.76
MGNX MacroGenics -$0.51
KMPR Kemper $1.35
MDRX Allscripts Healthcare Solutions $0.15
COP ConocoPhillips $0.60
SHEN Shenandoah Telecommunications $1.01
USM United States Cellular $0.43
MTZ MasTec $0.77
GT Goodyear Tire & Rubber $0.08
TDS Telephone Data Systems $0.44
ETN Eaton $1.25
REGI Renewable Energy $0.20
PRAH PRA Health Sciences Inc $1.34
HUBG HUB $0.46
TPR Tapestry Inc $0.30
PRGO Perrigo $0.56
BLDR Builders Firstsource $0.81
BBD Banco Bradesco $0.10
TPL Texas Pacific Land $5.79
ASEKY Aisin Seiki Co $0.88
NLSN Nielsen $0.32
ARW Arrow Electronics $2.27
CLGX CoreLogic $0.97
TFSL Tfs Financial $0.07
UBSI United Bankshares $0.74
GRA W.R. Grace $0.73
PTCT PTC Therapeutics -$1.59
INSM Insmed -$1.02
TOELY Tokyo Electron Ltd PK $1.25
BBVA Banco Bilbaoizcaya Argentaria $0.15
GOL Gol Linhas Aereas Inteligentes -$0.91
SRCL Stericycle $0.59
AUOTY AU Optronics $0.33
CX Cemex Sab De Cv $0.03
PBR Petroleo Brasileiro Petrobras $0.12
TOT Total $0.85
AMRN Amarin -$0.03
TWOU 2U -$0.23
LYG Lloyds Banking $0.07
BEN Franklin Resources $0.74

Friday (April 30)

Ticker Company EPS Forecast
LYB LyondellBasell Industries $2.51
AVNT Avient Corp $0.72
BCPC Balchem $0.80
JCI Johnson Controls $0.49
HOCPY Hoya Corp $0.81
CL Colgate-Palmolive $0.79
BCS Barclays $0.41
AON AON $4.05
HUN Huntsman $0.58
PNM PNM Resources $0.19
XOM Exxon Mobil $0.60
CHTR Charter Communications $4.25
PSX Phillips 66 -$1.28
ITW Illinois Tool Works $1.90
GWW Grainger $4.31
HRC Hill-Rom $1.43
POR Portland General Electric $0.87
BSAC Banco Santander Chile $0.41
ABBV AbbVie $2.81
WY Weyerhaeuser $0.88
WPC W. P. Carey $0.51
SHLX Shell Midstream Partners $0.35
CVX Chevron $0.90
NWL Newell Brands Inc $0.13
MITSY Mitsui & Company $10.53
CLX Clorox $1.47
LAZ Lazard $0.88
LHX L3Harris Technologies Inc $2.96
KMTUY Komatsu $0.32
BNPQY BNP Paribas ADR $0.59
APELY Alps Electric $0.27
ALNPY ANA Holdings ADR -$0.90
PSXP Phillips 66 Partners $0.83
AZN Astrazeneca $0.68

 

Twitter Could Rally to 100

Twitter Inc. (TWTR) has rallied more than 14% since Monday’s opening bell and may be engaged in a long-awaited breakout run above resistance in the mid-70s, posted just six weeks after the social media giant came public in 2013. The sky’s the limit if that happens, as we have seen with other big tech leadership in the last decade. A new advertising platform has energized the latest uptick but the initiative has been adding points since it was first announced in 2020.

Political Pressure Eases

Social media sentiment has steadily improved since the 2020 presidential election, which culminated in Twitter and Facebook Inc (FB) banning President Donald Trump for Terms of Service violations. In addition, there has been less talk about a repeal of FCC Section 230 liability protections under the Biden administration and a recent Congressional hearing on big tech abuse proved to be little more than off-Broadway theater.

The company took another step to bolster ad revenue on Thursday, hooking up with research firm Nielsen (NLSN). Twitter executive Doug Brodman crowed about the partnership, noting “Nielsen’s cross-media suite will make it easier to augment our client’s video strategy and planning with Twitter’s premium video inventory and optimize audience reach and frequency alongside other top video platforms. Ultimately, this expanded partnership brings increased transparency, clarity and value to Twitter’s video solutions.”

Wall Street and Technical Outlook

Wall Street analysts still have not jumped on the bull bandwagon, with a modest ‘Hold’ rating based upon 10 ‘Buy’, 25 ‘Hold’, and 4 ‘Underweight’ recommendations. In addition, four analysts recommend shareholders close positions and move to the sidelines. Price targets currently range from a low of just $30 to a Street-high $95.00 while the stock is now trading about $2 below the median $72.50 target.

Twitter ended a long-term decline in the mid-teens in 2017 and turned higher, stalling in the mid-40s in 2018. A 2019 breakout attempt failed, yielding a two-year low during the pandemic decline, followed by an uptick that reached the 2013 high at 74.73 in February 2021. A breakout failed after hitting an all-time high at 80.75 while the decline into March found support at the 50-day moving average. Positive price action since that time bodes well for a durable breakout and rally into triple digits.

For a look at all this week’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.