TWTR

TwitterNYSE:TWTR Stock Report

Market Cap

US$50.0b

7D

4.3%

1Y

46.9%

Updated

22 Sep, 2021

Data

Company Financials +
TWTR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

TWTR Overview

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

Twitter Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Twitter
Historical stock prices
Current Share PriceUS$62.78
52 Week HighUS$38.93
52 Week LowUS$80.75
Beta0.77
1 Month Change0.42%
3 Month Change-5.58%
1 Year Change46.92%
3 Year Change115.66%
5 Year Change164.67%
Change since IPO39.82%

Recent News & Updates

Sep 02

Why I Bought Twitter On The Dip

Despite blowing out Q2 earnings estimates, Twitter is trading 10% down from July 22nd price. Twitter can put together people with different interests, that's what makes it unique. What amazes me the most is that Twitter is a $50B business. I wouldn't be surprised if it doubles. Twitter's forecasted growth for the next 10 years is quite impressive. EPS will grow at a CAGR of 21% during the next 8 years.

Sep 02
These 4 Measures Indicate That Twitter (NYSE:TWTR) Is Using Debt Reasonably Well

These 4 Measures Indicate That Twitter (NYSE:TWTR) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 27

Where Will Twitter Stock Be In 5 Years? The Path To 149% Upside

TWTR has frustrated long-term shareholders with mild stock price returns. TWTR has $8.6 billion of cash and is producing free cash flow. The stock trades at only 10x forward revenue estimates, offering an attractive entry point. I rate shares a buy with a 20% 12-month upside.

Shareholder Returns

TWTRUS Interactive Media and ServicesUS Market
7D4.3%-2.9%-1.8%
1Y46.9%66.3%31.5%

Return vs Industry: TWTR underperformed the US Interactive Media and Services industry which returned 69.5% over the past year.

Return vs Market: TWTR exceeded the US Market which returned 33% over the past year.

Price Volatility

Is TWTR's price volatile compared to industry and market?
TWTR volatility
TWTR Beta0.77
Industry Beta1.12
Market Beta1

Stable Share Price: TWTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TWTR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20065,500Jack Dorseyhttps://www.twitter.com

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, create, distribute, and discover content. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services.

Twitter Fundamentals Summary

How do Twitter's earnings and revenue compare to its market cap?
TWTR fundamental statistics
Market CapUS$49.99b
Earnings (TTM)US$384.43m
Revenue (TTM)US$4.45b

130.0x

P/E Ratio

11.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWTR income statement (TTM)
RevenueUS$4.45b
Cost of RevenueUS$1.59b
Gross ProfitUS$2.86b
ExpensesUS$2.48b
EarningsUS$384.43m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)0.48
Gross Margin64.23%
Net Profit Margin8.64%
Debt/Equity Ratio67.4%

How did TWTR perform over the long term?

See historical performance and comparison

Valuation

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

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TWTR ($62.78) is trading below our estimate of fair value ($82.69)

Significantly Below Fair Value: TWTR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TWTR is poor value based on its PE Ratio (130x) compared to the US Interactive Media and Services industry average (40.4x).

PE vs Market: TWTR is poor value based on its PE Ratio (130x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: TWTR is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: TWTR is overvalued based on its PB Ratio (6.5x) compared to the US Interactive Media and Services industry average (3.9x).


Future Growth

How is Twitter forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWTR's forecast earnings growth (35.6% per year) is above the savings rate (2%).

Earnings vs Market: TWTR's earnings (35.6% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TWTR's revenue (18.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: TWTR's revenue (18.4% 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 (10.6%).


Past Performance

How has Twitter performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWTR has a large one-off loss of $98.4M impacting its June 30 2021 financial results.

Growing Profit Margin: TWTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TWTR has become profitable over the past 5 years, growing earnings by 5.9% per year.

Accelerating Growth: TWTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TWTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-5.3%).


Return on Equity

High ROE: TWTR's Return on Equity (5%) is considered low.


Financial Health

How is Twitter's financial position?


Financial Position Analysis

Short Term Liabilities: TWTR's short term assets ($9.7B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: TWTR's short term assets ($9.7B) exceed its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: TWTR's debt to equity ratio (67.4%) is considered high.

Reducing Debt: TWTR's debt to equity ratio has increased from 32.8% to 67.4% over the past 5 years.

Debt Coverage: TWTR's debt is well covered by operating cash flow (25.3%).

Interest Coverage: TWTR's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


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?

6.2yrs

Average management tenure


CEO

Jack Dorsey (44 yo)

6.17yrs

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 ($USD1.00) is below average for companies of similar size in the US market ($USD11.33M).

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 (6.2 years average tenure).


Board Members

Experienced Board: TWTR's board of directors are considered experienced (4.2 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 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$49.991b
  • Shares outstanding: 796.29m
  • Website: https://www.twitter.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:19
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
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.