Twitter Stock Analysis (NYSE:TWTR)

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$15.04 $0.1 (0.67%) TWTR stock closing price Mar 29, 2017 (Closing)
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Twitter
Updated on : Mar 29, 2017
previous close
TWTR 15 (0%)
NASDAQ 5897.6 (0%)
Closing Price On: Mar 29, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-14.5%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
1.69B
Debt/Equity Ratio:
 0.37
Compared to the industry
Cash Flow
Operating cash flow:
$196.6M
Net Income:
-$167.1M
PROS      CONS
FCF Margin
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
TWTR PS :
4.2
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-9.2%
Return on Equity:
-10.1%
Free Cash Flow Margin:
20.7%
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Twitter Analysis Video

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Our Twitter analysis throws up more reasons to sell than buy the stock, because it has historically underperformed on nearly every financial or fundamental parameter based on which companies are normally evaluated. We have analyzed twitter on various parameters like Twitter revenue growth, profits, and valuation based on PE (See: Twitter PE ratio chart), PS ratios, Twitter's assets and many more. Twitter stock analysis compares it with fast growing Internet industry peers, but still finds it to be expensive and risky buy right now.

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Twitter Inc Stock Rating (2.3/5)

Should you buy TWTR stock?

  • Twitter has a healthy FCF (Free Cash Flow) margin of 20.7%.

Should you sell TWTR stock?

  • Over the last twelve months, Twitter posted an average operating loss margin of -14.5%.
  • Twitter posted an average Net loss of -18.1% in the last twelve months.
  • Twitter is debt laden and has a high debt/equity ratio of  0.37.
  • PE ratio is meaningless for TWTR stock as the company has losses.
  • The company is trading at a price to sales multiple of 4.2, which is overvalued in comparison to the Internet Software industry average multiple of 2.6.
  • Twitter's negative ROIC of -9.2% indicates operational inefficiency.
  • A negative ROE of -10.1% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Twitter stock

arnulacroix22 on Twitter stock analysis ($48.01)
bullish
Watch Twitter, Inc. (TWTR) Stock @ current levels. The company registered nearly two-fold increase in revenue on its financial results and above analysts' consensus earnings estimates. Check this out: http://finance.crwe-pr.com/2015/02/07/st...
1 reply
nagarkar.vikram on Twitter stock analysis ($40.47)
bearish
Our Facebook Twitter Comparison Video http://amigobulls.com/articles/facebook-...
reply
user profile picture
neena@amigobulls on Twitter stock analysis ($31.96)
bearish
Jim Cramer says Twitter is no longer a good short. Stops short of calling it a buy
We quote "No, don't buy them for takeovers. The valuations are still too high. But at this pace, that won't be for long -- and you don't want to be caught shorting a company that could turn out to be valuable to a bigger company that wants to own a growing space."
http://www.thestreet.com/story/12701445/...

We disagree, it is overvalued. We remain bearish.
2 reply
user profile picture
virendra on Twitter stock analysis ($39.56)
bearish
Improved Monetization can't compensate for lackluster user growth and engagement. Not for long! Long term risks overshadowed a solid Q1. Result? Stock tanked 10% post earnings.
http://amigobulls.com/articles/twitter-l...
reply
tittat1 on Twitter stock analysis ($51.41)
bullish
Not only is it a simple architecture, but it continues to be used globally on a wide scale. It needs little in the way of alteration. Moreover, persons in any language can learn it easily and in the 3rd world this is King.
2 2 reply
user profile picture
lisajohn on Twitter stock analysis ($46.32)
bearish
Just because its easy to use does not justify its valuation or current price! People often confuse what they like with whether its a value stock..
tittat1 on Twitter stock analysis ($51.41)
bullish
Twitter is a great buy, it is still a simple architecture that continues to work time after time, low maintenance even in the face of many more visual competitors and makes it simple enough for anyone to use.
1 2 reply
user profile picture
viren@amigobulls on Twitter stock analysis ($51.92)
bearish
Andre Waldron argues that Twitter's user base is going to be a problem for the company. Here is the link to seeking alpha article
http://seekingalpha.com/article/2089603-...
3 1 reply
user profile picture
topstocker on Twitter stock analysis ($53.88)
bearish
Sure Big data is an opportunity ! but not big enough to wait 40 years to earn back your investment in sales/revenues! Lets not even talk about profits !
2 reply
user profile picture
oracleofwallstreet009 on Twitter stock analysis ($54.83)
bearish
At a P/S of 45x Sales and With profits nowhere in the picture, Even growth at 100% for the next five years is nearly priced in at the current prices.
6 2 reply
user profile picture
thinkstocktalk on Twitter stock analysis ($54.83)
bullish
Theres a huge opportunity in Big data dont you think? I dont think the potential has been understood!
6 1

Twitter has been a momentum stock as can be seen from Twitter stock price history, driven more by market sentiments and expectations of future growth and buyouts, rather than financial strength. Our Twitter share analysis indicates a very risky proposition with very high price to sales ratio and non-existent price to earnings ratio, as Twitter is yet to report any net profits. Our stock analysts find twitter stock to be a very risky proposition.