Twitter stock price on roller coaster ride after the release of Q1 earnings

Shares of Twitter (NYSE:TWTR) are on a roller coaster ride today after the company reported better-than-expected Q1 results but failed to assure investors of recovery or stability. 

Fundamental analysis: Twitter tops expectations

Twitter reported earnings of $0.11 per share on $808 million revenue, compared to $0.10 per share on $776 million expected from the market. Monetizable daily active users (mDAUs), a proprietary metric for tracking users that it can sell ads against, was reported at 166 million, compared to 164 million expected from the surveyed analyst. 

The company has been hit by cancellation of big live events that usually generate high traffic on social media networks. 

Segal’s warning that Twitter has witnessed a weakened advertising spending at the end of March, which may also translate into April and ultimately affect Q2 earnings, pushed the stock price lower into the negative territory. 

Technical analysis: Twitter stock price trades up and down

Following the release of the Q1 earnings report, shares of Twitter initially surged 12% higher in premarket trading. However, all those gains quickly evaporated as Sigal offered few signs of recovery or stability in the current quarter and warned of weak ad spending. 

This has prompted Twitter stock price to gap nearly 8% lower at the open today, before managing to recover nearly half of these losses in the first trading hour on Wall Street as shares trade around 5% lower now. The volatile price action comes a day after the Twitter stock hit a 7-week high at $31.50 yesterday.

The price action is now likely to remain under pressure for the rest of the day with a potential close above the $30 mark crucial for the short-term directional bias. A failure to do is likely to attract more selling pressure as sellers eye $26.30 as their next target. 

Summary

Shares of Twitter are trading around 5% lower today, despite gaining 12% in premarket trading, after the company’s executive warned of weak advertising spending in the closing weeks of March amid the cancellation of live sports events.