Twitter, Inc. (TWTR) – The world’s social media giant will report Q4 2020 results today after the US stock market close. For the last quarter, the company’s return per share is expected to be $0.29 and revenue is expected to be $1.18 billion, while the company’s share price last night closed at a multi-year high of $ 58.20. As a result, the company’s market value is now $46 billion.
An important factor that could help the financial report for the last quarter of 2020 is the improvement in the company’s advertising revenue prompted by the start of the economic recovery. The group of companies that use Twitter for their marketing have begun to come back, and it is likely that more ads may be spent after this as new products begin to be released following the delays caused the coronavirus outbreak. Over the course of the outbreak, Zacks expects ad revenue to be $1.05 billion, a 19.1% increase compared to the same quarter a year ago.
In terms of functionality, Twitter has recently created a new feature called Fleets for use on both iOS and Android systems, which are tweets that disappear after 24 hours and cannot be seen again. Another notable addition to Twitter is its better ability to identify and remove inappropriate content from the platform, which is another interesting development for the company.
Investment increased nearly 20% in the fourth quarter compared to the full-year investment following the announcements of Twitter’s acquisition of Squad a social media video app, and Revue, an email newsletter company. All of this could affect the profit of this quarter.
In 2020, social media platforms such as Twitter were widely used, due to both the effects of the lockdowns on people having to work from home and the use of Twitter in intense political communications, however the termination of former President Trump’s Twitter account could affect the number of users.
From a technical point of view, Twitter’s share price has been in the multi-year high zone and is now stuck in the upper frame of Channel. With yesterday’s closing price in a shooting star candlestick pattern and a lower MACD, there is a chance of bearish divergence. If the turnover is lower than expected the market may cause the company’s share price to fall sharply. The first support is $53 and the next support is at $44. However, if the numbers reported are good the company’s stock price may go up to test the first resistance at $63.
Source: https://www.nasdaq.com/articles/twitter-twtr-to-report-q4-earnings%3A-whats-in-the-cards-2021-02-05
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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