Twitter Shares Have Historically Dropped 9% The Day After Earnings

Shares of Twitter Inc TWTR tend to tumble following earnings reports. As noted by StockTwits user robertlesnicki, after the last four reports the stock lost 16.28 percent, 4.55 percent, 1.5 percent and 14.52 percent, respectively.

Looking even further back, we found that the stock slipped about 9 percent after the FQ1’15 call, and following the FQ3’14, FQ1’14 and FQ4’13 reports. On the day after each one of these call, shares of Twitter lost 9 percent, 8.5 percent and 8.5 percent.

Twitter shares fell about 10 after hours following a big guidance cut.

While it's too early to say, it looks like a trend could be forming around Twitter earnings. Is it a good time to bet against the social media giant?

On the other hand, it would be prudent to consider the opposite option: contrarians might be salivating over the prospect of a favorable reaction on the heels of meager expectations.

Right now, it’s a wait-and-see situation.

Check back with Benzinga to get a comprehensive review of the results just a few minutes after they are out.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.