Twitter's stock price fell heavily in after market trading following release of its September quarter results. It remains to be seen if the stock price will actually be dealt with this harshly when the main market opens tonight. If it is, Twitter will be getting close to important chart support.
The Twitter results and guidance appeared to be broadly in line with consensus analyst expectations. However, analysts aren't the market. Initial trader reaction was negative with concern about slowing momentum in the growth of active users. These now stand at 284m, up 23% over the past year. Twitter's profit for the quarter was $6.97m or 1c per share. So a lot of revenue growth is going to be needed to create the kind of earnings that support a $45 stock
Twitter CFD daily
The after market price saw Twitter down around 9% to about $44. If the stock does open down here it will represent a break well below trend line support and the 200 day moving average. From that level, the support around $42.95 starts to look pretty important. This support is provided by the July peak and August low. A break below that level could imply more downside to come.