Twitter Inc (NYSE:TWTR) is in the spotlight this morning after deciding to withdraw its first-quarter revenue and operating forecast amid the growing economic effects of the coronavirus pandemic. The social media giant said the outbreak has negatively effected ad sales, though the number of active users on the platform has increased. The stock is trying to brush off the news this morning, up 2% at $25.20, at last check.
Twitter's withdrawn outlook has sparked at least seven price target cuts from analysts, including Wedbush which slashed its price target by $6.50 to $30 and also lowered its first- and second-quarter revenue forecast. The consensus 12-month price target is now at $33.50 -- a 33.1% premium to current levels. Coming into today, the brokerage bunch was already cautious on TWTR, with 18 of the 24 in coverage calling it a "hold."
The options pits have been a bit more optimistic. This is per Twitter's 50-day call/put volume ratio of 3.42 at International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the slightly elevated 66th percentile of its annual range, suggesting a healthier-than-usual appetite for long calls of late.
TWTR has been trying to claw its way back up the charts since hitting a two-year bottom of $20 last week. And while the equity has found some support at the $24 region, it's still down 21% for the year, with pressure emerging at the 10-day moving average today.