Quarterly earnings surprises from high-flying stocks like Twitter (NYSE:TWTR) and iRobot (NASDAQ:IRBT) sent shares higher in the last week. Leadership change at IBM (NYSE:IBM) lifted the stock. It is not too late to trade any of those names.
iRobot stock rose 16% on the day following its Q4 numbers. Revenue grew by 11% but operating income fell to $16.8 million, down from $29.8 million last year. Markets ignored the income drop because it was due to tariffs. The short volume is at ~49%. So, the stock’s short squeeze may lift it higher.
Twitter reported earnings of $0.25 (non-GAAP) after revenue rose by 11.1% Y/Y to $1.01 billion. Advertising strength ($885 million, up 12%) and strong user growth (7 million mDAU added Q/Q) raised buying interest for the stock. Twitter also raised its capital expenditure forecast to $775 million - $825 million, compared to the $571.5 million consensus estimate.
Twitter is a thriving broadcast system. More users are joining, forcing advertisers to invest in this platform.
Old technology firm IBM closed last week at 52-week highs after its CEO, Ginni Rometty, said she will step down. Investors who bought the stock recently may want to cash in. IBM’s growth prospects did not chance. It will take lots of effort from the new CEO to strengthen IBM’s growth rates.
