On Tuesday before Twitter Inc. (TWTR) reported its first quarter earnings, traders were making some diverse bets on it.? After undergoing five days of losses, Twitter’s shares jumped 6.4% in trading. This came as analysts had estimated the company would undergo a 3 cents per share loss reported MarketWatch.
Some also saw volatility coming its way. ?
Victor Anthony of Topeka Capital Markets, wrote in a report,??We are maintaining our buy into the print but we believe the stock is likely to be volatile due to user growth issues (solvable, in our view), lock-up [expiration], typical late spring-summer lull for Internet stocks, [and] overall swoon in Internet stocks.?
Meanwhile, options traders were expecting a move in the stock after the earnings report.?
Based on options pricing for expiring ones on Friday, wrote Chris Dietrich of the Wall Street Journal, Twitter could move 14% in either direction throughout this week. ?This may sound like a wide margin but this has been seen before.
After Twitter’s last earnings report (back in February), ?the stock fell 24 percent in just one trading session.?This followed disappointing news by the company that its user growth was slowing down.?
What will see this time? After the bell, the company again announced disappointing quarterly news. And again it was the story of struggles to increase users at a quicker rate. Revenue wasn’t the problem as it increased?to $250.49 million, up from $114.34 million.
However, Twitter did report a first-quarter loss of $132.36 million (23 cents a share). This compared to a $27.03 million loss (21 cents a share) from the previous year.
In after-hours trading, Twitter was down 9.4 percent. ?