Tag Archives: twitter stocks

Twitter Earnings: Investors Focusing On User Growth

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Touches Highest in Six Weeks Ahead Of Fed Meeting

The U.S. dollar touched its strongest in 6 weeks against a basket of major currencies today as investors await a policy review by the Federal Reserve. The Fed is almost certain to cut its monthly bond-buying program by another $10 billion as it looks to wind up the scheme later in the year, but the focus for markets is on any clues to the timing of the first interest rate hike. The dollar index, which measures the greenback’s value against a basket of major currencies, held steady at 81.029 having risen to 81.084 late last week, its highest level since early February. The euro remained pinned near an eight-month trough of $1.3421 set on Friday. It last traded at $1.3435, little changed on the day. In a sign of the increasingly bearish market sentiment toward the euro, data from a U.S. financial watchdog late last week showed that speculators increased their net short position in the euro to 88,823 contracts in the week to July 22, the most bearish positioning against the single currency since late November 2012.

Fed To Raise Rates Sooner Rather Than Later?

According to some market-watchers, an improving economy could force the Fed to shift into rate hiking gear sooner than it had anticipated. While this is not a majority view, it is one that has been picking up momentum. Others see the Fed holding off on rate hikes until late next year, but then hiking much more aggressively than expected. The Fed meets for two days starting Tuesday and is widely expected to taper back its monthly bond buying program by another $10 billion to $25 billion. While the Fed is not likely to reveal any more about the timing of rate hikes or how it will unwind its more than $4 trillion balance, it is likely to be discussed at this week ‘s meeting. Traders will be watching for clues on Fed timing in its statement, particularly around the Fed’s dual mandates of helping employment and fighting inflation. Fed chair Janet Yellen last said unemployment “remains elevated,” and described inflation as running below its objective of 2 percent. Economists expect the Fed’s more hawkish members to ramp up their calls for ending easy policy, if economic data improves. Amid concerns that the Fed has stayed easy for too long, there are the opposite fears that it is unwinding easing before the economy has picked up real traction, and that higher rates could harm critical parts of the economy, like housing. The economy is still growing at a sluggish speed which could show up Wednesday when second-quarter GDP is released, and economists are forecasting growth of just 2.9 percent. At that pace, it does not show much spring back from the 2.9 percent contraction in the first quarter.

Fed watchers are looking as much to the data this week as the Fed statement for clues on its policy path. The July employment report on Friday is expected to show the economy added more than 200,000 jobs for a sixth month, and the unemployment rate is expected to drop to 6 percent. The Fed has stepped back from its target of 6 percent unemployment as a pivot point for considering rate hikes, but the market remains fixated on the number.

Twitter Earnings: Investors Focusing On User Growth

Twitter is due to report its second-quarter results after the market closes today. A surge in sales is expected but investors are more concerned with seeing signs of growth in the social-network’s user base. The social media giant is forecast to post a loss of a penny a share, compared with a loss of 12 cents a share in the year earlier period. Twitter’s revenue is expected to more than double to $283.4 million from $139.3 million in the year ago quarter. Twitter shares have fallen 8% in the last three months and are down 40% year-to-date, mainly due to investor worries that the company’s user base isn’t growing fast enough, but is reportedly planning to introduce new user metrics to show investors that it has a growing reach even though its base is expanding at a slower rate. It remains to be seen whether it can convince Wall Street that it can create value even without robust growth in monthly active users. Twitter inevitably faces comparisons to social media giant Facebook. Last quarter, Twitter reported that it had 255 million monthly active users, which pales in comparison to Facebook, which just reported 1.3 billion monthly users in the second quarter. Twitter is nonetheless considered a key player in the social networking market.

That sums up today’s highlights! As always, you can stay in touch via our Facebook, Twitter, Google+ & LinkedIn pages for all the latest trading updates. We hope you have a profitable day on the markets.

Dollar Close To Recent Lows As Yellen Testimony Awaited

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: US Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Close To Recent Lows As Yellen Testimony Awaited

Janet Yellen’s appearance today in front of the Joint Economic Committee will be followed for any shifts in the Fed’s economic and policy outlook following the recent employment figures. Traders across the financial markets will be watching to see if she has a message that could alter the course for interest rates. The U.S. dollar languished close to six-month lows against a basket of major currencies today as investors braced for the possibility that dovish comments from Janet Yellen could further undermine the greenback. The dollar index sank nearly a half percent Tuesday and is now down nearly a full percent in the last week. The dollar was weaker across the board, falling against the euro, yen, sterling, Swiss franc and major emerging market currencies such as the Indian rupee and Turkish lira. The dollar index was at its lowest level since October 2012, and its lowest level against the pound since August 2009.

Frustration has been growing among some players at the dollar’s inability to move higher even after the payrolls report, as the Federal Reserve continues to scale back its bond-buying support. Market consensus seems to be forming on the view that the Fed is still a long way from raising interest rates even after it ends its quantitative easing program, which is expected later this year. Analysts expect the dollar to recover when there’s sign of inflation or a further dip in the unemployment rate.

Brent Edges Up On Fall In U.S. Crude Stocks & Ukraine Risks

Brent Crude edged higher above $107 per barrel today after an industry report showed U.S. crude stocks declined last week, while increasing geopolitical risks in Ukraine helped put a floor under prices. Crude inventories in the United States fell by 1.8 million barrels last week, going against analysts’ expectations for a 1.4-million-barrel gain. Investors now await confirmation of the API numbers from the U.S. Department of Energy’s Energy Information Administration, which releases its more closely watched data later on Wednesday. Brent crude rose 26 cents to $107.32 a barrel by 0352 GMT, after ending the previous session 66 cents lower. U.S. crude gained 60 cents to $100.10 after the contract had settled 2 cents higher. Heightening tensions in Ukraine and the possibility of the country slipping into civil war also helped lift oil markets, as traders weighed the risk of supply disruptions from Russia, the world’s biggest oil producer.

Twitter Drops Nearly 18% As Lock-Up Period Expires

Twitter dropped sharply on Tuesday as nearly 500 million shares from company insiders became eligible to be sold. The stock fell nearly 18 percent on record volume of more than 124 million shares to a fresh all-time low since their trading debut on Nov. 7. The lock-up agreement that expired this week applied to about 470 million shares, or 82 percent of Twitter’s equity. With the stock’s recent selloff, Twitter’s current market cap is at $19 billion. Tuesday’s reaction to Twitter’s lock-up expiry was in sharp contrast to that of Facebook in late 2012. Facebook shares jumped 13 percent on Nov. 14 that year, when its lock-up expiry of roughly 800 million shares did not trigger an immediate wave of insider selling. Last week, Twitter’s net loss grew by more than $100 million in the first quarter, though the company’s operating earnings and sales topped Street expectations. Monthly active users hit 255 million, with mobile MAUs making up 78 percent of the total.

That sums up today’s highlights! We hope you have a profitable day on the markets

Gold Declines For Second Day In Advance of Fed Policy Meeting

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Gold Declines For Second Day In Advance Of Fed Policy Meeting

Gold declined for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today. Bullion for immediate delivery fell as much as 0.2 percent to $1,293.68 an ounce, trading at $1,295.70. Gold has advanced 7.8 percent this year in part as the tension in Ukraine spurred haven demand. With further sanctions for Russia looking certain, traders are likely to continue seeking safety in gold in the near term and if gold continues to rally, April highs at $1,331 will be the key level to look out for this week.

Euro Resilient Ahead Of Inflation Test

The euro traded at multi-week highs against the yen early today and held firm against the dollar following a surprisingly strong performance overnight as expectations for additional stimulus from the European Central Bank waned. The Euro reached a three-week peak of 142.18 yen, before slipping a touch to 141.97 yen. ECB President Mario Draghi told German lawmakers the central bank was still a long way off from implementing a bond-buying program even in the face of persistently low inflation. Still, traders said any downside surprise in the inflation numbers will weigh on the euro, especially since the market is positioning for a pick up in price pressure. German inflation figures are due later on Tuesday, ahead of the euro zone number on Wednesday. The euro was a touch firmer on the dollar at $1.3852 after recoiling from a two-week high of $1.3880, helping the dollar index recover to 79.696 from a two-week low of 79.548.

Wall Street Divided Over Twitter’s Prospects

Not so long ago, Twitter vowed not to end up like Facebook. As it prepared to debut, the last thing the company wanted was a repeat of Facebook’s rocky IPO and subsequent sell-off. Now, ironically, Twitter’s inability to replicate Facebook’s success in mobile and online may be what is holding it back. Wall Street remains divided over Twitter as the company prepares to unveil its second set of quarterly numbers. Eleven of 31 investment analysts polled by Thomson Reuters rate it a “sell,” outnumbering the seven who deem it a “buy.” The rest have a hold rating or its equivalent. That’s a stark contrast with Facebook and Google, neither of which has a single sell rating to their name. A strong quarterly showing from Facebook last week reflected an ramped-up online and mobile advertising market that’s likely to have given Twitter a boost. Longer-term, investors remain divided over whether Twitter can ever be as mainstream as Facebook. Yet $26 billion, the company still trades at 37 times sales, against 19 for Facebook, which boasts almost six times as many users as Twitter. Indeed, bullish analysts argue that the company is on the verge of realising its larger potential. Five months after its debut, Twitter stock remains above $40, versus its $26 offering price. Twitter has always seemed better placed to make money off of its smartphone user base. Although rivals Google and Facebook dominate mobile advertising, Twitter’s ad machine may get a jump-start once it places targeted ads in apps, tailored for users and their interests, which will extend its ad reach far beyond its 241 million users. Many believe that Twitter is best-placed to grab a significant slice of huge TV ad budgets because of its growing presence as the “second screen” that TV audiences turn to online, to catch up on their favorite shows. Analysts expect Twitter to have lost almost $159 million, or about 3 cents a share, on revenue of $241.47 million in the January-March quarter, according to Thomson Reuters.

That sums up today’s highlights! Keep in touch with the investment team here at Banc De Binary via Facebook, Twitter, Google+ and LinkedIn for all the latest market news. We hope you have a profitable day on the markets.

Lackluster U.S. Home Sales For March

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Existing Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Lackluster U.S. Existing Home Sales Expected For March

Monthly sales data due today is expected to reveal lackluster rates in March as existing home sales likely fell by 1.0% to a 4.57 million unit rate. Pending home sales have remained weak, with a 0.8% decline in February after a 0.2% decline in January, suggesting limited momentum for completed sales. Total housing inventory was up in February, although the number of homes for sale was still low, indicating that constraints on the supply side are also likely to continue to hold back the sales pace. Analysts are, however, expecting a sharp spring rebound with some strengthening in home sales as an increase in projects and purchases delayed by bad weather proceed.

Is The Long Bull Market Set For A Summer Correction?

As the markets head towards the summer, analysts are becoming increasingly concerned that the long bull market in stocks is set for a correction. The S&P is now nearly 1 percent higher for the year, after rising around 30 percent last year, but it is still down over 1 percent from the all-time high it reached in early April. The Dow Jones Industrial Average is off around 1 percent this year, after climbing over 22 percent last year. Market watchers point out that the market could react to any number of factors, such as an escalation of tensions in Ukraine, deleveraging in China or even if the Federal Reserve’s moves to taper its asset purchases prove to be too fast. A correction could be as much as 8 percent over a four to six week period. Earlier this month we experienced a correction in social media stocks with high-flying momentum names in Internet and social media sectors sold off sharply. The Nasdaq index dropped as much as 9.7 percent from its March high, flirting with the official correction level of 10 percent, before retracing some losses. The index is still down nearly 4 percent from its early April high. Many U.S. listed technology stocks entered a bear market, experiencing a loss of at least 20 percent, with more funds flowing into stocks considered defensive or lower risk. If conditions deteriorate, analysts expect the Fed may hold off on tapering which would boost prices again, while noting the correlation between the Fed’s moves to increase its balance sheet by buying assets and gains in stocks is around 90 percent.

Apple Among Top Tech Market-Value Losers As Facebook Posts Gains

The technology selloff has seen off large chunks of value, highlighted by big market cap drops in the sector’s high-fliers led by Apple and Amazon. Apple has shed about $28 billion in market cap since the beginning of the year, a 6% drop as Twitter’s market value has fallen 26%, as its market capitalisation fell by $9 billion. Other big name technology stocks have seen substantial cuts in market value: LinkedIn fell by nearly $5 billion, or a loss of 18% while Yahoo dropped by $4.5 billion. A notable exception in the downward trend is Facebook which has seen its market value grow by nearly $15 billion, or 11%, since the beginning of the year. Investors appear to be turning to more mature tech powerhouses amid the uncertainty, for example, Microsoft, which has seen its market value climb 7% by $22 billion. According to analysts, there is something of a bubble going on in tech, and with those except Apple who have really high multiples, it is easy to see how concerns about an overheated market would cause people to flee high-multiple stocks and to seek refuge in lower-multiple stocks.

That sums up today’s highlights! Keep up with all the latest trading events of the day via our social media channels - we’re on Facebook, Twitter, Google+ & LinkedIn.

We hope you have a profitable day on the markets!

Jobless Claims Likely To Rise

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Jobless Claims Likely To Rise

Data showing the number of Americans filing for first-time unemployment benefits is likely to show a slight gain in the latest weekly data. Forecasts reveal that weekly initial claims for regular state unemployment-insurance benefits will rise to 315,000 in the week that ended April 12, which is slightly up on 300,000 for the prior week. Some seasonal volatility may have accounted for last week’s drop in jobless claims to 300k which was the lowest level since May 2007, although layoffs are trending lower and hiring is gaining some momentum after being held back by the severe weather. The U.S. Labor Department will release the claims data today at 12.30 GMT.

European Shares Mixed, Dollar Falls As Yellen Pledges to Support Economy

European shares are set for a mixed open today, failing to continue a rally on Wall Street after Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keep interest rates low. The FTSE is called up 1 point at 6,585, the German Dax is seen off by 8 points at 9,310 and the French CAC is seen down 3 points at 4,403. European bourses could see thin volumes today ahead of the Easter holiday weekend when many indexes are closed for a four-day weekend. In the U.S. stocks climbed after U.S. industrial production rose more than projected and Yellen reiterated that the central bank would keep up its backing of the recovery. Wall Street saw a strong close on Wednesday but those gains failed to translate to the rest of the globe. Asian stocks turned mixed following gains in this morning’s session as investors booked profits on the previous day’s rally. Investors in Europe will be monitoring events in Ukraine.

The U.S. dollar, meanwhile, fell against most of its Group of 10 peers. The dollar fell 0.2 percent to $1.3839 per euro and slid 0.2 percent to 102.03 yen, after rising 0.7 percent in the previous four days. The Japanese currency fetched 141.20 per euro from 141.24 yesterday. Financial markets in the U.S., U.K., Germany, Hong Kong, Singapore, Australia and New Zealand are among those that will be closed for a holiday tomorrow.

Google Misses Revenue Target As Trends Move Toward Mobile Advertising

Google Inc’s first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, highlighting the challenges Internet companies face as the world shifts toward mobile devices. Shares of Google were down 3 percent to $539.80 in afterhours trading on Wednesday, after initially sliding roughly 6 percent on the news. The number of “paid clicks” by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts who had hoped for stronger volume growth. The average “cost per click” declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business. The world’s largest search engine, along with Facebook Inc and Twitter Inc, which are due to report financial results in coming weeks, are revamping their products and advertising business to account for smartphones.

That sums up today’s highlights! Remember that you can keep up-to-date with all the trading news and events for the day via our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets.

Just A Minute!

Welcome to Wednesday’s ‘Just A Minute’. Here’s a 60 second summary what’s happening in the markets today:

Main trading events of the day: U.S. ADP Non-Farm Employment Change @ 08.15, CAD Building Permits m/m @ 08.30 & @ U.S. ISM Non-Manufacturing PMI @10.00 GMT
Stocks to watch: GlaxoSmithKline PLC, Twitter Inc, Walt Disney Company
Trader Tip For The Day: Watch Twitter & Walt Disney prices as earnings releases are expected today

What We’re Watching Today: Stock Markets

A big earnings day today as Twitter is due to post its first quarter report. Most analysts remain cautious on the stock, which some see as overvalued. We’re also still keeping an eye on the S&P and emerging stocks. U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding following the biggest drop since June and added 0.8 percent. Turkey’s lira led gains among emerging-market currencies but overall, a gauge of stocks in developing nations extended its worst-ever start to a year.

Today’s Headline:

Emerging Markets Turmoil Sparks Credit Crunch Fears

Very much in the news right now, we continue to monitor the activities of emerging markets and possible economic repercussions. As economic growth slows in Brazil, India and China, there are fears that capital outflows out of these countries could be the first signs of a credit crunch — and the third stage of the global financial crisis after the U.S. subprime rout and the euro zone’s debt woes. lberto Gallo, who heads European macroeconomic credit research at RBS, said the outflows were indicators that two major emerging market economies, Brazil and China, were already in the early stages of a credit crunch. Banks create a credit crunch when they become more cautious to lend out and push up the cost of borrowing, making it harder and harder for companies to borrow to grow their businesses. A credit crunch is normally a sure sign a country’s economy is heading into stormy waters. Some analysts are even referring to the current emerging market turmoil as the “third leg” of the global financial crisis that struck in 2007.

Tech:

Google Wallet

Here’s an interesting one for our app fans. While Google Wallet has allowed you to store physical loyalty cards inside its app for some time, having to type in a long series of numbers tended to discourage people from adding them. An update that rolls out on iOS today (and on Android last week) uses your smartphone’s camera to take a picture of the barcode and then adds the loyalty card to your digital wallet. The app can also alert you via push notification when you pass by a store where you have enrolled in the loyalty program. Given how often people abandon their loyalty programs, it could also help people get the rewards they dreamed of getting when they first signed up for a card. Google Wallet has until now been a troubled product but today’s updates make it far more useful. Keep an eye on Google prices today (when don’t we!)

That sums up Wednesday’s highlights! Remember, watch for those important earnings announcements today and keep in touch with us on Facebook, Google+ & Twitter for all the latest news, information, tips and more! Trade with the experts and become a superior trader!

Twitter IPO to Decide Faith of Web Startups

Twitter Inc. (TWTR)’s initial public offering stakes a lot more than shares held by employees and investors. The firm’s performance will impact how dealmakers in Silicon Valley value upcoming Internet startups.

A strong Twitter debut will give the green light to venture capitalists and entrepreneurs for other consumer-Internet IPOs and the level of prices startups can handle in funding. A decline in shares, however—like the one experienced by Faceboon Inc. (FB) after its IPO in May 2012—could hurt valuation of internet startups and drive venture capital downwards.

Facebook’s sharp decline of 50 percent within its first three months as a public company spread its effects all across the startup field. Venture investor loss of faith in internet companies dropped for three consecutive quarters before picking up in the second quarter of this year, according to the National Venture Capital Association.

Twitter’s offer seeks to raise as much as $1.4 billion and it is speculated that the company has already drawn enough interest to sell of the shares in its IPO.

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