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Investment Opportunities

Peloton and Twitter – Two Earnings Plays to Watch Immediately

Peloton and Twitter – Two Earnings Plays to Watch Immediately
  • PublishedFebruary 5, 2020

Two companies are set to report earnings – and I believe both are primed for a big move.

By the time you read this Trade of the Day issue, the first company will already have reported. And that company is Peloton (Nasdaq: PTON).

Going into the report, Peloton has been quite polarizing. Its 2019 sales growth is currently 110.3% – and Wall Street loves rewarding growth with a huge price premium. But on the other hand, Peloton was just downgraded by Bank of Montreal Capital Markets (before market open) with a $27 price target.

Even more dramatic, Citron Research set a $5 price target on Peloton, saying, “Unless Peloton invents a piece of equipment that works out for you – this is going to $5.”

Going into the earnings report, Peloton is expected to report earnings per share (EPS) of negative $0.32 on revenue of $423.45 million.

Will Peloton gap up or gap down tomorrow?

Is it a $5 stock… or a $50 stock?

This will certainly be worth tracking first thing in the morning.

The second company set to report earnings before the market open tomorrow is Twitter (NYSE: TWTR).

Over its last three earnings reports, Twitter has moved 21% lower, 5% lower and 14% higher. So clearly, this name makes tradable moves.

Going into the report, the expectation is that Twitter will report EPS of $0.28 on revenue of $997.35 million.

Will Twitter gap up or gap down tomorrow morning?

We’ll certainly be tracking and trading it in The War Room.

Action Plan: If you want to follow along, then pull up Peloton and Twitter tomorrow morning – and track the magnitude of each earnings move.

If you’d like to start trading these moves using our unique earnings methodology, then I invite you to join me in The War Room! And explore our newest presentation by clicking here!

Written By
Bryan Bottarelli

Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.