After a dismal participation in the bull market off of the 2016 lows for the S&P 500, Twitter has finally woken up and begun to outperform its peers.
The company continues to see a strong earnings trend, with nearly 100% earnings per share growth reported last year.
As long as the bulls can hold the $32.00 level on a weekly close, the bulls will remain in control.
While social media stocks like Facebook (FB), Weibo (WB) and SINA Corp. (SINA) saw powerful moves off of the 2016 market lows, Twitter (TWTR) got left in the dust after an already abysmal post-IPO performance. The good news for Twitter bulls is that since the December 2018 lows, it’s managed to reverse roles and is now leading the pack. The stock is in the top 10% of strongest stocks on the US market, has put up a healthy 30% return vs. the S&P 500’s (SPY) 12% return, and has handled the recent correction quite well. The new uptrend in Twitter, coupled with robust earnings per share growth for FY 2018, suggests that this move could be sustainable. However, the key will be the bulls playing defense where they have to. I have no position in the stock currently, but the stock for the first time has made it into my top 150 list.