Investors are aflutter over Twitter (NYSE:TWTR)
The stock surged to an all-time high Thursday, a rare bright spot in a down market, after the company announced lofty revenue goals.
Twitter expects to increase its user base to 315 million daily active users and double its yearly revenue by the end of 2023. The social media company is also considering a feature that will allow users to pay for subscriptions to their favorite Twitter accounts, a model it has dubbed Super Follows.
In a filing, Twitter details those goals, along with doubling development velocity by the end of 2023 (which means doubling the number of features shipped per employee that directly drive either monetizable daily active users or revenue).
Twitter plans to "at least" double annual revenue from $3.7 billion in 2020 to $7.5B or more in 2023.
It also reiterated a long-term margin target of mid-teens GAAP operating margin, or 40-45% adjusted EBITDA margin.
Even so, after the surge, traders are growing wary.
One expert observed that the last time the stock’s relative strength index moved this high, it suffered a correction. Its RSI, a momentum measure, was this overbought in mid-2018, a peak that preceded a roughly 40% stock decline in less than six months.
While it might not be the time to buy, the consensus is that there could be a better opportunity in the future.
The shares are up 38% this year, outpacing Facebook (NASDAQ:FB), Snap (NYSE:SNAP) and Pinterest (NYSE:PINS). TWTR opened Friday up $3.11, or 4.2%, to $77.70.
