Twitter Share Price Update: Crash Continues, Cathie Wood Adds

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.

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Twitter Share Price 4-Hour Chart

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