Take a look at the following communication services stocks: Zynga Inc., Twitter Inc, Just Eat Takeaway.com N.V. and others showed higher volumes than usual.
A quick recap of where the last trading session ended: Leading equity indices in the US rose as Nasdaq ended the session at 11,323 after a 1.88% gain. S&P 500 closed the day at 3,993, having gained 0.92%.
Why Trading Volume Matters
Trading volume is simply the total number of shares traded including both buy and sell orders. If a stock has appreciated on high volume, it is more likely to be a sustained move compared to an appreciation with low volume. Typically, high volume trading sessions are considered significant occurrences and closely watched by traders.
Price action was mostly bullish Friday with some communication services stocks recording abnormally high trading volumes. Here's a recap:
Zynga | 600% higher than rolling average Zynga sheds 2.04% within $8.14 to $8.43 daily range
Zynga Inc. outpaced its average daily trading volume (37.88 million) with 227.57 million shares traded Friday. Having fallen 12 cents in 8 days, Friday's session continued down the same path: during Friday's session, Zynga toiled and struggled for upward momentum before closing at $8.18. By the close, the Zynga suffered a 17 cents or 2.04% loss.
After hitting an important low of $5.77 approximately 11 months ago, Zynga has bounced back 44.71% since. So far in 2022 it has been beating the Nasdaq by 65%. The company's market cap is $9.16 billion with an average daily trading volume of 37.88 million shares. Zynga's last revenue report was $694.9 million with an EPS of 9.19 cents.
Twitter | 232% higher than rolling average Full steam ahead for Twitter (+0.66%) as a 5 day uptrend continues
With 75.14 million shares traded Friday, Twitter beat its daily average by 232% to cap off a frenetic trading day. 5 days and $3.46 of gains are not enough for Twitter. Friday's session pointed in the same direction — Twitter moves up 0.66% to close at $53.7 Friday.
The past 3 months have been positive for Twitter as it added 21.5% compared to its 3-month low of $32.42. So far in 2022, it has performed better than the S&P 500 by 46.4%. The company has a market cap of $41 billion with an average daily volume of 32.43 million shares. Twitter expected revenue of $1.26 billion with an EPS of 1 cents.
Takeaway.com | 1,883% above rolling average Lower open expected for Takeaway.com around $6.5 following 3.27% slide in pre-market trade
Trading volume peaked at 9.44 million shares Friday, thereby obliterating the daily average of 501,577 by 1,883%. Stable at $6.72 and still trending upwards, Friday's session put the brakes on the ongoing uptrend — Takeaway.com closed a flat day of trading at $6.72 Friday after ending Thursday at $6.72.
Takeaway.com has shed $9.71 points and is languishing 59.11% lower over the past year, leaving its yearly highs around $14.25 in the rear-view mirror. So far in 2022, it has been under-performing the Nasdaq by 11.38%. The company has a market cap of $7.39 billion with an average daily volume of 501,577 shares. Takeaway.com is forecasted to generate revenues of $624.83 million and EPS of -10.28 cents.
— Average trading volume refers to a 21-day rolling average.