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Market Cap

US$56.7b

Last Updated

2021/04/09 22:23 UTC

Data Sources

Company Financials +

Executive Summary

Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Twitter's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TWTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TWTR's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

11.5%

TWTR

5.6%

US Interactive Media and Services

1.6%

US Market


1 Year Return

156.4%

TWTR

92.2%

US Interactive Media and Services

55.3%

US Market

Return vs Industry: TWTR exceeded the US Interactive Media and Services industry which returned 92.2% over the past year.

Return vs Market: TWTR exceeded the US Market which returned 55.3% over the past year.


Shareholder returns

TWTRIndustryMarket
7 Day11.5%5.6%1.6%
30 Day9.8%11.0%4.1%
90 Day38.3%20.1%5.5%
1 Year156.4%156.4%92.2%92.2%58.1%55.3%
3 Year147.5%147.5%95.8%95.6%63.8%53.3%
5 Year304.9%304.9%174.1%173.5%120.2%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Twitter's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Twitter undervalued compared to its fair value and its price relative to the market?

7.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TWTR ($71.19) is trading above our estimate of fair value ($46.8)

Significantly Below Fair Value: TWTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TWTR is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: TWTR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TWTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TWTR is overvalued based on its PB Ratio (7.1x) compared to the US Interactive Media and Services industry average (5x).


Future Growth

How is Twitter forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWTR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: TWTR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TWTR's is expected to become profitable in the next 3 years.

Revenue vs Market: TWTR's revenue (17.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: TWTR's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TWTR's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

How has Twitter performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWTR is currently unprofitable.

Growing Profit Margin: TWTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWTR is unprofitable, but has reduced losses over the past 5 years at a rate of 20.5% per year.

Accelerating Growth: Unable to compare TWTR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TWTR is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (14.3%).


Return on Equity

High ROE: TWTR has a negative Return on Equity (-14.25%), as it is currently unprofitable.


Financial Health

How is Twitter's financial position?


Financial Position Analysis

Short Term Liabilities: TWTR's short term assets ($8.6B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: TWTR's short term assets ($8.6B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: TWTR's debt to equity ratio (43.7%) is considered high.

Reducing Debt: TWTR's debt to equity ratio has increased from 33.3% to 43.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TWTR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TWTR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.9% per year.


Dividend

What is Twitter current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TWTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TWTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TWTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TWTR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TWTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Jack Dorsey (43 yo)

5.75yrs

Tenure

US$1

Compensation

Mr. Jack Dorsey Co-founded Square, Inc. in February 2009 and has been its Chief Executive Officer and President since July 2009. Mr. Dorsey Co-founded Twitter, Inc. in 2006 and has been its Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD1.00) is below average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TWTR's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: TWTR's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TWTR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Twitter, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Twitter, Inc.
  • Ticker: TWTR
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$56.695b
  • Shares outstanding: 796.06m
  • Website: https://www.twitter.com

Number of Employees


Location

  • Twitter, Inc.
  • 1355 Market Street
  • Suite 900
  • San Francisco
  • California
  • 94103
  • United States

Listings


Biography

Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. The company offers Twitter, a platform that allows users to consume,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 22:23
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.