The Twitter share price crash deepened further in Friday’s session as the stock lost 15%, erasing 2021’s gains to end the week at $55.18.
In my report ahead of Friday’s opening, I discussed the company’s miserable Q1 earnings call, which revealed an alarming slowdown in user growth.
The ill-received release triggered a bout of heavy liquidation, and the stock ended the session at $55.18 and 32% lower than its 2020 high of $80.90. The sell-off sees the twitter price just 1.3% higher than its January 4th opening trade.
The sharp drawdown from the previous day’s close would certainly have instigated some stop-loss selling as over-leveraged investors received margin calls. But not everyone was panicking.
A report on Friday detailing ARK fund’s stock holdings shows that growth investing titan Cathie wood added $1.3 million shares across two of the firms’ ETFs.
Using the last traded Twitter share price of $55.18, the $72 million addition may not be considered substantial. It does, however, offer an insight into her view of the price. Even investors with the deepest-of-pockets don’t open or add to holdings unless they believe the stock represents good value.
Twitter Share Price Target
In Friday’s report, I suggested an initial price target of $54.00 per share. I maintain that the market is well-supported at that level. A trend line in place from the 19th of March lows at $20.00 sits at $54.18.
The danger remains that the price gaps below the support level on Monday’s opening and the long liquidation resumes.
If the Twitter share price can hold the $54.00 support in Monday trading, longs can be established with an upside target of 19th March lows, at $59.00. A close below $54.00 would signal lower prices and invalidate the bullish trade idea.
Twitter Share Price 4-Hour Chart
Follow Elliott on Twitter
Awarded and global FX/CFD broker. Well-regulated in multiple jurisdictions. Offers great spreads and liquidity for FX, Indices, and Commodities trading.
Cryptocurrency exchange with over 150 coins. As of Jan 18, Binance was the world's largest cryptocurrency exchange per volume.