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Twitter, Inc. shares rose. (TWTR) more than 3% during Wednesday’s session after JPMorgan upgraded the stock to Overweight with a $ 65.00 price target.
Main Takeaways
- Twitter shares rose more than 3% during Wednesday’s session after JPMorgan updated the stock to Overweight with a $ 65 price target.
- The analyst is bullish on online advertising next year and believes Twitter will show the biggest rebound as its sharp decline is driven by a pandemic.
- The stock moved further into oversized territory, but the mid-term move remains bullish.
JPMorgan’s Doug Anmuth is appearing on online advertising next year and he thinks Twitter will show the biggest resurgence as its sharper advertising decline is driven by a pandemic. The analyst believes Twitter stocks are trading at a “huge discount” to Snap Inc. (SNAP) and Pinterest, Inc. (PINS), and prefers Twitter’s risk-reward balance.
Last week, Twitter stock jumped after Snap announced a native Twitter integration that would incorporate tweets into Snapchat as an interactive embed. The move gives those who build screenshots of tweets a better user experience by allowing those who have logged in to both services to share tweets instantly in Snapchat.
From a technical standpoint, Twitter stock broke out of previous highs during Wednesday’s session. The Relative Strength Index (RSI) moved further into overbought territory with a reading of 78.90, but the moving average moving average (MACD) remained in a strong bullish uptrend. These indicators suggest that the stock would see some near-term consolidation, but the mid-term move remains bullish.
“At a discount” is the term used to describe the use of stock sales, or other securities, below their current market value, similar to sales of goods at a point of sale.
Traders should look for consolidation above previous highs of $ 52.93 over the coming sessions. If the stock breaks down, traders could move towards trendline support at $ 43.75 or the 50-day moving average at $ 46.49. If the stock expands its rally, traders will see a move towards a trendline resistance at $ 58.40 over the coming sessions.
The bottom line
Twitter shares moved higher during Wednesday’s session after JPMorgan upgraded the stock to Overweight with a $ 65 price target. While the stock moved further into oversized territory, the medium-term movement remains bullish. Traders should look for some consolidation between advance highs of $ 52.93 and resistance to a move at $ 58.40 over the coming sessions.
The author has no place in the stocks mentioned except through passively managed index funds.