Twitter (TWTR) closed at $39.89 in the latest trading session, marking a -0.65% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the short messaging service had gained 3.05% over the past month. This has outpaced the Computer and Technology sector's loss of 2.66% and the S&P 500's loss of 1.96% in that time.
TWTR will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWTR to post earnings of $0.04 per share. This would mark a year-over-year decline of 76.47%. Our most recent consensus estimate is calling for quarterly revenue of $756.74 million, down 8.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.92 per share and revenue of $3.27 billion, which would represent changes of -138.82% and -5.37%, respectively, from the prior year.
Any recent changes to analyst estimates for TWTR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.23% lower. TWTR is currently sporting a Zacks Rank of #3 (Hold).
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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