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Earningsplay

What you need to know to trade Twitter ahead of Thursday’s earniTwitter (NYSE:TWTR) is set to announce its first-quarter earnings results on Thursday and some analysts expect the microblogging platform to again incur losses on the back of its increased infrastructure and marketing spending amid tight competition. Saturated market The company, once among the most popular social media channels globally, has become old news particularly to young people with the emergence of platforms like TikTok and Snapchat (NYSE:SNAP). Facebook (NASDAQ:FB) remains the market leader among social networking sites globally in 2022 in terms of the number of monthly active users, while Twitter has lagged far behind WhatsApp, Instagram, WeChat, TikTok, Snapchat, Telegram and Pinterest in terms of the number of users, according to data from Statista. Stronger market competition over the past years has prompted Twitter to boost its spending on research and development, and sales and marketing over the recent years. Losses mount In 2021, Twitter’s R&D expenses ballooned 43% from 2020 to $1.25 billion, while sales and marketing costs surged 32% year on year to $1.18 billion. These pushed the company’s overall costs and expenses up 51% to $5.57 billion in 2021 and resulted in a net loss of $221 million for the whole year. Still, the figure was down from a net loss of $1.14 billion in 2020 when the pandemic battered the company’s operations. For the first quarter of 2022, Twitter expects GAAP operating loss of between $225 million and $175 million, against an operating income of $52 million in the year-ago period. Twitter also expects its quarterly revenue to range between $1.17 billion and $1.27 billion, up from $1.04 billion last year. Analysts expect the company to post a 22% jump in Q1 revenue to $1.57 billion, significantly up from the company’s targeted range. The analysts pegged Twitter’s earnings per share for Q1 at $0.33, down 13.2% from last year. In the fourth quarter of 2021, although total ad engagements fell 12% year over year, Twitter still managed to rake in $1.41 billion in fourth-quarter ad revenue, up 22% from a year prior. Musk’s $44 billion offer Ahead of its earnings release on Thursday, Twitter became the subject of an acquisition offer from Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk. On Monday, the New York Times reported that Twitter is close to reaching a deal to sell itself to Musk after the latter launched an unsolicited go-private bid worth $54.20, or a total transaction value of ~$44 billion. That figure represents a substantial premium from Twitter’s current $37 billion market value as of Friday. Musk has made his plans for Twitter quite clear. Even before the billionaire built a 9.2% stake in the company for an estimated $2.9 billion, Musk has been vocal about how Twitter’s policies quash free speech. However, the Tesla CEO has been notorious in the past for making big market-moving stunts that lead to bigger regulatory concerns for companies that he control. In his letter to Twitter’s board made public on Friday, Musk said "Twitter has extraordinary potential. I will unlock it.”
NYSE:TWTR
by BlackBull_Markets
1
NVDA earnings gamble ($250)Do you like risk? Do you like NVDA? Do you live on the edge? Are you dumb with your money?.. Then this is the chart for you! NVDA closes a gap at 228, and the charts are leading right to that gap closing on the 16th. Anyway, if that gap does close on the 15th or 16th, and earnings are good (AH on the 16th), why not take a chance up to $250 and maybe even higher, I'd probably say a max of 261.86. Anyway, I drew a line, because those are fun sometimes.
NASDAQ:NVDA
by nicktussing77
Trade idea on Walmart - WMTJust as an idea: Cash secured put on Walmart, with a strike price of $134 (delta 23) and an expiry of Feb. 18, 2022. Trade would to be closed on Feb. 16, 2022, 1 day before the quarterly results, which will be published on Feb. 17, 2022, before market opening. The $134-$135 area has successfully acted as support four times over 1 year. Whether it will do it another time is of course uncertain! The additional purchase of the cheaper put with strike price 115$ reduces the margin and creates a bull put spread. This trade idea is one of the 222 trade ideas from my book "The Stock Market Year 2022: Which stocks go up and when?" Disclaimer: This trade idea is for educational purposes only and does not constitute investment advice or a solicitation to buy or sell securities or financial instruments. Investment in securities and financial instruments (especially options) are generally associated with risks, up to total loss of the invested capital and above. I am not a financial advisor. Please do your own research and make your own decisions.
NYSE:WMT
by Optionopedia
Not enough LUVAirlines are not doing well still despite a bunch of propping up by various institutions. These earnings are going to be absolute garbage and the broader market is also gonna tank too. I expect a rally to the 44-45 range with a likely rebound Monday in the broader market. After this, there is nothing holding airlines up for the foreseeable future. What bullish catalyst exists for airlines right now? They've been on life support since the get-go and the labour shortage along with Omicron has completely wiped out Q4 earnings for airlines. TA-wise, it's rejecting the 500 day MA on the daily and is looking week on the RSI and MACD. Price action suggests serious bearish sentiment in the short term. I also put up a Fib retracement from the COVID crash and it's lining up well. Basically this area being rejected is another piece of evidence for serious downside. Also an evening star on the weekly confirmed. Puts and shorts ?
NYSE:LUVShort
by nathanielandrep
URBN Earnings 1 Week OutLeadup This morning's gap comes at the one week before the earnings mark. For five of the last six earnings reports, the close on earnings day has been higher than the close one week before. Price Action URBN recently completed a trading range and broke down for an almost 20% loss. After rallying 100% from this downward breakout, URBN did a brief bit of consolidation before this morning's gap. Indicators There was no accompanying rise in volume with this gap. DI is showing bullish, and ADX is above 30, the same as three of the five positive week leadups. RSI is in overbought territory on the daily chart but shows room to go up on the weekly chart.
NASDAQ:URBNLong
by Ronald_Ryninger
PYPL Earnings PlayDescription: Neutral Calendar Spread, betting on a small move and sharp decrease in IV short term options following earnings on Monday. Long Call Calendar Spread Levels indicated by the triangle: Max gain occurs at peak Break-evens at the ends Expiration on the right side Break-evens 254.1, +9.8% 213.46, -7.8% R/R: ~5:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/19 232.5C SELL 11/12 232.5C Only invest what you are willing to lose Break-evens and R/R vary on fill
NASDAQ:PYPL
by BarnardR
RBLX Earnings PlayDescription: Earnings after close today, taking advantage of high IV on same week options and covering with next week's (Calendar Spread). Long Call Calendar Spread Levels on Chart Break-evens 91.34 +16% 69.01, -12% R/R: ~4:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/19 79C SELL 11/12 79C Only invest what you are willing to lose Break-evens and R/R vary on fill
NYSE:RBLX
by BarnardR
Roku Earnings PlayDescription: Earnings after close on Wednesday, taking advantage of high IV on same week options and covering with next week's (Calendar Spread). From Deltaone on Twitter: twitter.com 76% expect beat 9.5% move priced in 7.7% avg move post earnings in recent quarters Long Call Calendar Spread Levels on Chart Break-evens 344.96, +12.89% 275.74, -9.77% Downside also protected by support established in DEC of 20. R/R: ~5:1 Positive R/R, stop loss levels built into position. Intend to close before near term expiration. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/12 307.5C SELL 11/05 307.5C Only invest what you are willing to lose Break-evens and R/R vary on fill
NASDAQ:ROKU
by BarnardR
6
Unfortunately there is more pain comingEveryone is still holding and remains bullish about wish future. As i see it now although i previously thought that the bottom was around $4.70 i expect a last gap down movement with an rsi and macd divergence. Upcoming results will be loaded with all the "bad" numbers so the the new CFO and management can show some improvement towards the next Qs. Retail is going to give up here since most of us will have a loss of >-50% and no liquidity and conviction to add more. Unfortunately i also did a terrible mistake in timing this one and i could have got myself a really better average price. This is a lesson for the future to wait for BOLD confirmations when adding a position and also decrease position when things turn south. I still strongly believe that Wish can turn things around but it will be a very painful time period for all the holders left. "Pain is temporary, it may last for a minute, a day , a year but eventually it will subside and something else will take it place, if we quit however it may last forever" P.S this is not a financial advice i have no clue where the stock might go, speaking for myself i am not selling short nor adding long at the moment.
WShort
by Philoslother
8