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Twitter Shares Surge After Strong Q2 Earnings

Twitter shares are surging higher today on the back of strong earnings and a larger-than-expected growth in its monetizable daily active usage (mDAU) data. mDAU for the 2nd quarter came in at 139million users, which was better than the 135 million users that analysts had been expecting, in data provided by IBES and pooled from Refinitiv. The company also reported an 18% reduction in spamming activity. Profits have grown 11-fold over the same period last year, coming in at $1.1billion against $100million in Q2 2018. Earnings per share stood at 20 cents, which was better than the 19 cents market analysts expected, and 3 cents better than the same quarter of 2018.

The mDAU data is increasingly become a metric for measuring Twitter’s revenue potential, after it embarked on a program of sanitizing its user database. Millions of fake profiles that were associated with electoral malpractices and spamming practices have been deleted in the process.

Technical Play for Shares of Twitter

Twitter has breached the $41.25 price level, which was where a major support was breached in July 2018 and tested without an upside break in April 2019. Successful break of this price level will complete the ascending triangle whose lower border is the rising support line that connects the price lows from November 2018 till date.

Continuation of upside break will have to be supported by continued rising buy volumes. A pullback to the broken resistance before price continuation is likely.Don’t miss a beat! Follow us on Twitter.