Thursday, 23 April 2015

FB, TWTR - mixed day for social media

Whilst the broader market battled higher, it was a mixed day for social media stocks. Facebook (FB) and Twitter (TWTR) settled lower by -2.6% and -0.6% respectively. Near term outlook is somewhat choppy, but mid/long term outlooks are bullish, for what remain two of the most popular of the momo stocks.

FB, daily

TWTR, daily


*I exited TWTR-long at the open... will consider a re-entry next week, ahead of Tuesday earnings.

So.. FB EPS were 42 cents vs 40 exp., but revenue fractionally missed. Overall, the numbers were fine, and there is little reason why FB won't soon break into the low $90s.. at which point it should become obvious - even to the mainstream, that it is likely headed for the giant $100 threshold.

As for TWTR, with earnings next Tuesday, things are very much in flux. There is plenty of chatter that TWTR has viable earnings upside of as much as 20%. Whilst that might seem out of range, it would not be the first time its seen such a reaction.

There is a clear price gap zone of $57/62. Rising trend/channel is offering $56 next Wed' morning.

The all time high for TWTR is $74.73 - from Dec'2013. Clearly, that is a long way up... roughly 50% from current levels. It will take continued broader market upside.. into the sp'2200/300s for TWTR to break into the mid 70s this summer/autumn.

However... barring some bizarre corporate failure, TWTR looks set to jump higher next week.