Today’s Research Reports on Stocks to Watch: Twitter and Apple

NEW YORK, NY / ACCESSWIRE / July 30, 2018 / Twitter shares may not have seen the kind of market cap blow that Facebook did after reporting earnings, but nonetheless, the social media stock also plummeted after reporting second quarter results. Twitter’s monthly active user growth was concerning to traders. Shares of Apple also closed in the red as investors prepare for the company’s own earnings report next Tuesday.

RDI Initiates Coverage on:

Twitter, Inc.
https://www.rdinvesting.com/report/?ticker=TWTR

Apple Inc.
https://www.rdinvesting.com/report/?ticker=AAPL

Twitter, Inc. shares collapsed on Friday, closing the day down almost 20.5%. The stock traded explosive volume of 123 million shares compared to an average trading volume of just around 29 million shares. The social media reported earnings that beat on both the top and bottom line but user growth turned negative, sending shares falling. For the second quarter, Twitter reported adjusted net income at $134 million, or 17 cents a share. Analysts had been expecting 16 cents. Revenue saw a growth of 24% to hit $710.5 million, which was also higher than what analysts had been expecting. Monthly user growth fell 1 million to 355 million. Company CFO Ned Segal said the decline in monthly active users of about 3 million was because of the company’s effort to clean up its platform, by purging fake accounts. Before the losses on Friday, shares of the stock had seen gains of roughly 80% so far this year.

Access RDI’s Twitter, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=TWTR

Apple Inc. shares were in the red on Friday, closing the day down 1.66% on average trading volume of about 24 million shares. The iPhone maker is expected to report its quarterly earnings on Tuesday, July 31. According to Gorilla Trades strategist, Ken Berman, Apple will likely outperform once it beats estimates. Berman wrote in an email, “I predict an all-around beat, possibly by as much as $1 billion in sales (over $53 billion) and up to seven cents ($2.26) on per-share earnings driven by a heavier mix of higher-priced iPhones, momentum in iPads and strength in services. Apple will be the first company in history to reach this milestone, but others will quickly follow, notably Amazon, then Alphabet, which I forecast will arrive before Microsoft.” According to Bernstein analyst Toni Saccanaghi, “FQ3…results are likely to mean little to investors barring a significant surprise to iPhone units, gross margins, or services trajectory. Investor focus has shifted to iPhone demand in FY19 with the next-generation iPhones.” He also said, “We note that historically, revenue guidance for FY Q4 has *not* been a helpful predictor of the strength of the forthcoming cycle, and FY Q4 gross margin guidance has only been helpful when Apple has guided meaningfully lower.”

Access RDI’s Apple Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=AAPL

Our Actionable Research on Twitter, Inc. (NYSE: TWTR) and Apple Inc. (NASDAQ: AAPL) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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