Twitter Stock Analysis, Valuation (NYSE:TWTR)

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$45.88 $0.64 (1.41%) TWTR stock closing price Jun 22, 2018 (Closing)

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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Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Twitter Inc Stock Rating 2.8/5

Should you buy TWTR stock?

  • Revenue growth has been tremendous with a compounded annual growth of 46.7 over the last 5 years.
  • The company has an operating cash flow which is 3.9787 times the net income. We see this as a positive signal.
  • Twitter has a healthy FCF (Free Cash Flow) margin of 22.8.

Should you sell TWTR stock?

  • Twitter's LTM Net margins were poor at 0.6%.
  • Twitter is debt laden and has a high debt/equity ratio of 0.35.
  • TWTR stock is trading at a PE ratio of 241.5, which is worse than the sector average multiple of 26.1.
  • TWTR stock is trading at a PS multiple of 13.4, which is a negative when compared to the Computer and Technology sector average multiple of 2.9.

Comments on this video and Twitter stock

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.