Twitter, Inc. (TWTR) shares rose more than 3% during Wednesday's session after JPMorgan upgraded the stock to Overweight with a $65.00 price target.

Key Takeaways

  • Twitter shares rose more than 3% during Wednesday's session after JPMorgan upgraded the stock to Overweight with a $65 price target.
  • The analyst is bullish on online advertising next year and believes that Twitter will show the biggest rebound given its sharp pandemic-driven ad decline.
  • The stock moved further into overbought territory, but the intermediate-term trend remains bullish.

JPMorgan's Doug Anmuth is bullish on online advertising next year and believes that Twitter will show the biggest rebound given its sharper pandemic-driven ad decline. The analyst believes that Twitter stock trades at a "substantial discount" to Snap Inc. (SNAP) and Pinterest, Inc. (PINS), and he prefers Twitter's risk-reward balance.

Last week, Twitter stock jumped after Snap announced a native Twitter integration that would bring tweets into Snapchat as an interactive embed. The move provides a better user experience for those taking screenshots of tweets by enabling those logged in to both services to share tweets seamlessly in Snapchat.

Chart showing the share price performance of Twitter, Inc. (TWTR)
TradingView.com

From a technical standpoint, Twitter stock broke out from prior highs during Wednesday's session. The relative strength index (RSI) moved further into overbought territory with a reading of 78.90, but the moving average convergence divergence (MACD) remained in a strong bullish uptrend. These indicators suggest that the stock could see some near-term consolidation, but the intermediate-term trend remains bullish.

"At a discount" is a phrase used to describe the practice of selling stocks, or other securities, below their current market value, similar to a sale on goods at a retail establishment.

Traders should watch for consolidation above prior highs of $52.93 over the coming sessions. If the stock breaks down, traders could see a move toward trendline support at $43.75 or the 50-day moving average at $46.49. If the stock extends its rally, traders could see a move toward trendline resistance at $58.40 over the coming sessions.

The Bottom Line

Twitter shares moved higher during Wednesday's session after JPMorgan upgraded the stock to Overweight with a $65 price target. While the stock moved further into overbought territory, the intermediate-term trend remains bullish. Traders should watch for some consolidation between prior highs of $52.93 and trendline resistance at $58.40 over the coming sessions.

The author holds no position in the stock(s) mentioned except through passively managed index funds.