As shown below in the intraday chart of Twitter (TWTR) over the last 15 days, the stock took the stairs up and is now taking the elevator down. After basically rallying from $17 up to $19 from the end of January through yesterday, today it has given it all back on earnings.
Big drops on earnings are nothing new for Twitter (TWTR). Below is a snapshot from our Interactive Earnings Report Database (start a 14-day free trial to sample) showing Twitter’s historical earnings reports since it went public back in late 2013. The stock has now had 13 earnings reports, and its share price has fallen on its report day 10 times. Shares have only traded up on earnings 3 out of 13 times. The stock’s average price move on its historical earnings reaction days has been absolutely horrid at -6.25%.
As mentioned above, TWTR has historically averaged a one-day drop of 6.25% on days it reports earnings. Using our Interactive Earnings Report Database, we checked to see how that compared to the entire universe of US stocks. As shown below, we found that TWTR is the fourth worst stock in the US when it comes to reacting to earnings reports. There are only three stocks that have historically averaged bigger one-day drops on their earnings reaction days — PRMW, FEYE, and LOCO. That’s a pretty brutal ranking to hold.
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(The table below lists the stocks that have historically averaged the biggest one-day declines on their earnings reaction days. For stocks that report before the open, we use that day’s trading. For stocks that report after the close, we use the next day’s trading. Only stocks with at least 10 quarterly earnings reports on record are included, and to make the list, the stock had to be trading above $10/share as of yesterday’s close.)