Market Overview

The Street Has Already Shrugged Off Twitter's Poor Q2 Earnings

The Street Has Already Shrugged Off Twitter's Poor Q2 Earnings

Twitter Inc's (NYSE: TWTR) stock took a nosedive from $18.50 to as low as $15.69 on the day after the company reported disappointing Q2 earnings numbers and forward guidance on July 26. However, only eight trading days later, the stock is now comfortably back above the $18 level once again.

In fact, Twitter buyers had only two days to buy the dip below $16 before the stock took off and never looked back.

Despite the disappointing numbers, the stock is now once again trading near its highest level of 2016. Twitter peaked at $18.90 just prior to Q2 earnings.

Although the stock is still nowhere near its IPO price of $26 or its all-time high of $74.73, M&A rumors have given shareholders at least a temporary relief from the steady downward drift they have endured over the past couple of years. Twitter stock hit an all-time low of $13.73 back in May.

Related Link: Another Day, Another Rumor: Where Will Twitter Be In 6 Months?

There has been no shortage of speculation about who, if anyone, is actually interested in buying Twitter. The latest rumors involved a potential bid from Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer and Saudi Prince Al-waleed Bin-Talal, although SunTrust analyst Bob Peck has called the potential deal “unlikely.”

Despite the post-earnings bounce, Twitter shares are still down 20.2 percent in 2016.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: Education Technicals Movers Trading Ideas General Best of Benzinga


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