Twitter (NYSE: TWTR) shares continue to trade in a buy zone after Truist Securities upgraded TWTR from hold to buy with a $74 price target. Twitter shares could advance again above the $70 resistance level this April; still, if the U.S. stock market enters a more significant correction phase, the share price could be at much lower levels.Fundamental analysis: Truist Securities upgraded TWTR from hold to buy with a $74 price target
Twitter shares have found a strong support level above $60, and for now, there is no risk of a positive trend reversal. Twitter reported Q4 results in February; total revenue has increased by 27.7% Y/Y to $1.29B while Q4 GAAP EPS was $0.27 (beats by $0.11).
Total revenue has increased above expectations (+$100M) while monetizable daily active users rose around 27%. Twitter has proven stability in challenging market conditions, and the management expects Q1 revenue to be between $940M and $1.04B.
The company also announced that it would have at least 315M users by the end of 2023, and it plans to “at least” double annual revenue by then. It is important to say that more than 80% of Twitter’s revenue comes from brand ad budgets, while less than 20% of it comes from performance.
The long-term goal is to change this to a 50/50, and the company reported that it is exploring a subscription-follow model it’s calling “super followers.” Via this model, users could pay to get exclusive content that will not be available for regular followers.
Last month, Citigroup raised its price target on Twitter to $80 and reported that Twitter should benefit from investment choices.
“The company is making prudent investments that will feed revenue growth, and even though they’ll “likely dampen near-term profits, we think they are smart. Twitter has been putting money into staffing, technology, and acquisitions, and is largely on the right path now,” said Jason Bazinet, an analyst from Citigroup.
Last week, Truist Securities upgraded TWTR from hold to buy with a $74 price target on expectations that the company could grow its revenue even more in the upcoming years. Twitter shares could advance again above the $70 resistance level, but my opinion is that there are certainly better long-term investment opportunities at the moment.Technical analysis: Twitter shares continue to trade in a buy zoneData source: tradingview.com
Twitter shares have advanced from $25 above $80 since April 2020, and the current price stands around $64. If the price jumps above $70, it would be a signal to trade Twitter shares, and the next target could be around $75, but if the price falls below the $55 support level, it would be a firm “sell” signal.Summary
Twitter shares have advanced from $25 above $80 since April 2020, and the current price stands around $64. Last week, Truist Securities upgraded Twitter from hold to buy with a $74 price target on expectations that the company could grow its revenue even more in the upcoming years.
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