How Twitter Is Working to Reverse Its Declining User Rate
Shareholder returns and stock trends
As of February 24, 2016, Twitter (TWTR) has generated returns of -62.9% for the trailing 12 months (or TTM) and -5.8% in the trailing-one-month period. The share price of the firm has declined by 3.1% in the trailing-five-day period.
Twitter’s (TWTR) peers Alphabet (GOOG), Facebook (FB), and LinkedIn (LNKD) have generated returns of -1.3%, 1.6%, and 6.0%, respectively, in the trailing-five-day period.
Moving averages
On February 24, 2016, the last trading price of Twitter was $18.0. The company’s stock was trading 8.2% above its 20-day moving average of $16.6, 6.5% below its 50-day moving average of $19.3, and 23.2% below its 100-day moving average of $23.4.
Moving average convergence divergence and relative strength index
The MACD (or moving average convergence divergence) is the difference between the short-term and long-term moving averages of a firm. Twitter’s 14-day MACD of -0.79 shows a downward trading trend, as the figure is negative.
The 14-day relative strength index (or RSI) for Twitter is 52, which shows that the stock is neither overbought nor oversold. If the RSI is above 70, it indicates the stock has been overbought. An RSI figure below 30 suggests that a stock has been oversold.
Analyst recommendations
Out of 42 analysts covering Twitter, 15 have a “buy” recommendation, three have a “sell” recommendation, and 24 have a “hold” recommendation. The analyst stock price target for the company is $21.1 with a median target estimate of $19.0. Twitter is trading at a discount of 5.3% with respect to its median target.
Twitter (TWTR) constitutes 3.1% of the PowerShares NASDAQ Internet Portfolio (PNQI).
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