Home Stock Twitter share price outlook as CEO Dorsey steps down

Twitter share price outlook as CEO Dorsey steps down


On Monday Twitter Inc. (NYSE:TWTR) shares declined by 2.66% despite receiving positive chatter from Elliot Investment Management. The first lauded the company’s CEO change after Jack Dorsey was replaced by Parag Agrawal. The real-time conversation platform’s founder stepped down from his role paving the way for the company to move on from its founders.

Twitter shares momentarily spiked more than 11% following the news, before erasing all the gains to swing to a net session loss. The firm sees Twitter as a company on the verge of a major turnaround as it continues to execute a long-term plan that could see it increase its reach and value.

Twitter’s growth outlook

Although Twitter trades at a steep forward P/E ratio of about 49.76, its growth prospects could be a compelling option for investors.

Analysts expect its earnings per share to skyrocket by more than 675% next year, before increasing at an average annual rate of 41% over the next five years.

Therefore, although this year’s earnings are expected to fall by 177%, the long-term future looks exciting.

Source – TradingView

Technically, Twitter shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted deep into oversold conditions, creating the perfect opportunity for a rebound.

Therefore, with the stock trading closer to the trendline support, investors could target upward profits at about $50.04, or higher at $54.37. On the other hand, $42.49 and $38.56 are support levels.

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