Twitter Inc (NYSE:TWTR) is playing out one of its favorite games this morning, with Twitter stock spiking sharply on a day where no news headlines can be found.
Not that TWTR isn’t being talked about. Outlets like StockTwits and Twitter itself are alive with rampant M&A speculation.
Ain’t it always the case.
The straw-clutching appears to be coming from comments made by co-founder Evan Williams during a Bloomberg TV interview. His quote, when pressed about TWTR remaining independent:
“We’re in a strong position now, and as a board member, we have to consider the right options.”
In other words, he didn’t categorically shoot down the idea, and thus Twitter is sure to be bought out. Right?
One might otherwise have speculated that the move was due to optimism over the company’s latest video initiative. Namely, in a tactic reminiscent of Alphabet Inc’s (NASDAQ:GOOG, NASDAQ:GOOGL), TWTR is going to start sharing ad revenue with users who post video.
But that news ain’t exactly fresh, coming to light a full day ago. Traders and investors alike have had plenty of time to absorb this and deal with Twitter stock accordingly.
It’s also certainly not some second consideration of Twitter’s earnings report from late July. TWTR disappointed on Q2 revenues as well as Q3 sales guidance. The only salvation was a 3-cent earnings beat, but Twitter stock was toasted as a result. It’s doubtful the market starting poring back over the report and found hidden gold.
For what it’s worth, the move in TWTR has a little technical merit, at least insofar as the stock is bouncing strongly off its 200-day moving average. Shares already appeared to be done consolidating their quick August gains. And it appears the $18.50 area that rejected TWTR back near the end of June might now be serving as support., given the past week or so of trading.
Momentum appeared to have slowed as of this writing, but the high areas to watch are $20, where weekly calls are piling up, and $21, which is where shares topped out mid-month.
