This is concerning when there is a divergence between good earnings news and the reaction of stock prices. This is especially true for a large well-known tech company with a high price-earnings ratio and whose CEO is present at the Bitcoin conference.
The trend is for these types of stocks to rally 2. In other words, recent reports of good earnings often equate to higher stock prices than before. Facebook and Apple are examples. When this did not happen, the analyst doing the homework began to wonder why.
Twitter is the situation now, this company has a lot of enthusiastic followers, “Look at these benefits!” Crowd. Okay, I’ve seen it now, why aren’t more buyers showing up here? If things are going so well, why are sellers entering the market earlier than before?
In today’s bull market environment, normally one person would need to follow another to remain bullish.
Twitter daily price chart shows high price failure:
daily TWTR 7 24 21
Twitter daily price chart, 7 24 21 STOCKCHARTS.COM
You can see it peaked a few months ago and then sold in large quantities. Analysts who fall in love with this earnings report should explain why so many sales occurred at prices far below the previous peak.
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Twitter’s weekly price chart here as follows:
TWTR weekly 7 24 21
Twitter’s weekly price chart 7 24 21. STOCKCHARTS.COM
from the panic panic period in early 2020 The low point of the country began to rise. Will this momentum continue?
This is Twitter’s long-term monthly chart:
TWTR monthly chart 7 24 21
Twitter’s monthly chart, 7 24 21. STOCKCHARTS.COM
From a different perspective, Twitter’s point and figure chart:
TWTR pnf 7 24 21 .png
TWTR point and figure chart, 7 24 21 STOCKCHARTS.COM
You don’t need MBA, machine learning or artificial intelligence to understand price changes. Something happens when a stock cannot reach or exceed its previous high due to the good news of an increase in earnings. This may be an unrecognized problem, who knows? This divergence may be worth noting.
The price will definitely continue to rise as the days and weeks pass.
This is not investment advice. Before making any decision, please do your own research and consult a registered investment adviser.