Twitter's Fourth Quarter Has To Beat The Third Quarter

Fourth quarter earnings results are coming up for Twitter in the beginning of February, and with shares climbing off their November lows it’s time to look at the stock and decide if now is the right time to buy ahead of earnings results.

After all, shares plunged following the third quarter earnings, and have only partially recovered from the over 30% drop. So, shares may be trending higher, but they could easily reverse course in response to an earnings disappointment.

It’s been estimated that Daily Active Users at Twitter have climbed to 145 million in the fourth quarter, which would be an 18% increase. And analysts still expect Twitter DAUs to climb to 162 million in 2020, which would put the platform back at the level seen before the 2018 purge of bots and spam accounts.

A good earnings report could set off a massive rally in Twitter. The stock has done it before. In June 2017 shares were trading around $17 and there seemed no way up. Yet just a year later in June 2018 the stock hit a high of $47.79 a share.

And that’s Twitter in a nutshell really. A super volatile stock, likely to shoot higher like a rocket, and drop even faster. It can be nerve-racking, but it can also be profitable when traders catch the ups and downs properly.

Another plus for the stock is that 2020 features the summer Olympics and a U.S. Presidential election. Those are sure to bring in plenty of advertising dollars for social media platforms, including Twitter.