Twitter (NYSE:TWTR) stock was up 0.28% in mid-morning trading on June 17. Shares have climbed 25% in 2019 so far. The stock has slipped 5.6% over the past month. It took a beating after a top analyst lowered the price target in anticipation of slower revenue growth and rising costs.
In the first quarter of 2019 Twitter beat expectations and reported adjusted earnings per share of $0.37 compared to $0.15 expected in a Refinitiv survey of analysts. Revenue also beat expectations and came in at $787 million. Daily active users were up year-over-year, but Twitter has tough tests ahead especially as an election season nears. Social media giants have wrestled with how to police their platforms in recent years, and Twitter has often been in the spotlight.
Twitter’s trailing 12 months P/E of 21 puts it in attractive value territory relative to industry. Shares of Twitter rose into technically overbought territory in late April. Its recent price weakness has put it back into neutral territory. The stock had an RSI of 47 as of this writing.
There is significant anxiety in the broader market over a coming US Federal Reserve meeting that could impact the near-term direction of top U.S. stocks. Going by its technicals, Twitter cannot be called a bargain in mid-June. However, a dovish direction this week will give investors a good reason to add at its reduced price as the summer kicks off.
