TWTR is on track for its best single-session gain since 2017
The big earnings winner on Wall Street this morning is Twitter Inc (NYSE:TWTR). While the social media giant reported adjusted fourth-quarter earnings that fell short of expectations, revenue clocked in at $1.01 billion, exceeding the $996.7 million estimates. Daily active users also rose to 152 million, above the forecast 147.5 million.
All of that adds up to Twitter stock being up 16.2% to trade at $38.79 out of the gate, on track for its best single-session gain since October 2017. TWTR has blown past yesterday's resistance at its 100-day moving average, and is testing support at the 160-day trendline. The shares have almost filled the sharp post-earnings bear gap from late October that culminated in a Nov. 7 bottom of $28.63.
No one in the analyst community has stepped forward with any bull notes, but there's certainly room aboard the bandwagon. There are 23 brokerages covering TWTR, and 18 rate it a "hold" or "strong sell." Plus, the consensus 12-month price target of $34.20 is now an 11% deficit to last night's closing perch of $33.39.
Twitter's options pits have exploded today. Already over 195,000 call options have changed hands, 11 times the average intraday amount and volume pacing for the 100th percentile of its annual range. Most of the attention is occurring at the weekly 2/7 40-strike call, where new positions are being opened. Not far behind is the February 40 call and weekly 2/7 38.50-strike call.