Twitter Stock Surges with Profitability in Reach

Ford Motor is moving higher, defying short-term option bears

Emma Duncan

Managing Editor

Oct 26, 2017 at 10:12 AM

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TWTR

U.S. stocks are trading higher, signaling a quick comeback from yesterday's disappointing close.Among the stocks making moves this morning are social media powerhouse Twitter Inc (NYSE:TWTR), automobile maker Ford Motor Company (NYSE:F), and pharmaceutical concern MediciNova, Inc. (NASDAQ:MNOV). Here's a closer look at what's moving shares of TWTR, F, and MNOV.

TWTR Pops on Profit Forecast

Shares of Twitter are rallying after the micro-blogging company reported a third-quarter earnings beat, and predicted it will "likely be GAAP profitable" for the first time ever in the current quarter. At last check, TWTR was up more than 12% at $19.20, gapping higher after Wednesday's 200-day moving average test. Twitter is now up roughly 18% year-to-date.

Given the upbeat earnings reaction for TWTR, the stock could benefit from future upgrades. All 24 analysts following the stock maintain carrying "hold" or "sell" recommendations, including nine "strong sells."

Ford Earnings Defy Option Bears

Ford reported a third-quarter earnings beat, pushing its shares 2% higher to trade at $12.27. The stock has advanced over 17% from its mid-August lows. Near-term Ford options traders are put-heavy, as evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.11 -- which ranks in the 99th percentile of its annual range. Following today's well-received earnings, an unwinding of these bearish bets could support additional upside in Ford Motor shares.

MediciNova Hits New High on Upbeat Study Results

Positive results from a mid-stage trial for the company's progressive multiple sclerosis (MS) drug has sent MediciNova shares higher. The MS drug, ibudilast, was shown to be safe and effective while reducing the progression of whole brain atrophy. Shares of the pharma stock have added 1.2% to trade at $6.61, down from the new annual high of $7.85 set right out of the gate this morning. MNOV's positive price action could attract some bullish analysts to the shares, as only one brokerage firm is currently following the stock (with a "buy" rating).

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