Why Twitter Inc (TWTR) is Hardly Out of the Woods

Twitter Inc (TWTR) is getting a news-induced lift, but Wall Street isn't sold on the social media stock

by Alex Eppstein

Published on Aug 10, 2015 at 10:46 AM

Twitter Inc (NYSE:TWTR) shares have had a rough go of it since the company underwhelmed the Street with its quarterly active user stats. Since its July 28 close at $36.54, the microblogging stock has plunged 23.4% to trade at $28. Today, however, TWTR is up 3.5% on some well-received news.

First, the firm revealed a multiyear partnership with the NFL to feature more pro football content on the social media platform. Second, TWTR said it will consider shuffling its board, which could include the departure of former CEO Dick Costolo.

On the sentiment front, Monness Crespi Hardt upped its rating to "buy" from "neutral." This represents a break from the wider trend, as 54% of analysts currently maintain lukewarm "hold" assessments toward TWTR. It should be noted, however, that the stock's consensus 12-month price target of $40.48 stands in territory not explored since late April.

Separately, traders have displayed near-extreme levels of skepticism, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, TWTR's 10-day put/call volume ratio across this trio of exchanges is 0.59 -- in the 98th annual percentile.

In short, the sentiment landscape seems to match Twitter Inc's (NYSE:TWTR) longer-term technical performance. Should the equity resume its slide, though, future price-target cuts are a possibility.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

3 Million to Lose Jobs – and Not Because of Coronavirus?
A terrifying new trend can make you a millionaire or destroy your financial future.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.