Twitter Stock Analysis, Valuation (NYSE:TWTR)

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$32.83 $0.45 (1.39%) TWTR stock closing price Aug 16, 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?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 43.2.
  • The TTM operating margin was good at 10.08 for Twitter.

Should you sell TWTR stock?

  • The TWTR stock currently trades at a PE of 109.4, which is expensive, compared to the sector average of 25.4.
  • The company is trading at a price to sales multiple of 9.2, which is higher in comparison to the Computer and Technology sector average of 2.9, making TWTR stock expensive.

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.