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TWTR

Twitter NYSE:TWTR Stock Report

Last Price

US$37.80

Market Cap

US$28.8b

7D

-1.9%

1Y

-45.1%

Updated

29 Jun, 2022

Data

Company Financials +
TWTR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends0/6

TWTR Stock Overview

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

Twitter Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Twitter
Historical stock prices
Current Share PriceUS$37.80
52 Week HighUS$73.34
52 Week LowUS$31.30
Beta0.58
1 Month Change-5.90%
3 Month Change-2.30%
1 Year Change-45.07%
3 Year Change4.94%
5 Year Change112.12%
Change since IPO-15.81%

Recent News & Updates

Jun 22

Can Twitter Stock Rebound To $50?

Twitter has been in the news recently, but for all the wrong reasons. Fake news and political mayhem resulted in President Trump being banned from the platform. Jack Dorsey, the man who conceptualized Twitter and twice served as its CEO dramatically quit and left the company. The share price collapsed and is currently trading below its 2013 IPO price, despite a top line CAGR of 29% over that period. Elon Musk has acquired a 10% stake and is attempting a take-over. But what is really going on? Is Twitter a good investment opportunity? We’ll answer all of these questions and more.

Jun 14

Arb's Golden Age: Elon Musk And Twitter

Time to put money to work. Merger arb spreads are wide. Here’s what you can buy today.

Jun 06

Twitter: Watch The Circus From The Sidelines

Elon Musk is having second thoughts about buying Twitter given an alleged lack of transparency in the number of spam/fake accounts on the platform. Twitter's stock has given up all its gains since Musk's initial disclosure of a 9.2% stake in the company. Shares remain vulnerable to headlines and speculation, making a case for staying on the sidelines amidst shaky fundamentals.

Shareholder Returns

TWTRUS Interactive Media and ServicesUS Market
7D-1.9%1.2%1.6%
1Y-45.1%-47.1%-20.8%

Return vs Industry: TWTR exceeded the US Interactive Media and Services industry which returned -46.9% over the past year.

Return vs Market: TWTR underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is TWTR's price volatile compared to industry and market?
TWTR volatility
TWTR Average Weekly Movement10.6%
Interactive Media and Services Industry Average Movement11.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: TWTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: TWTR's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20067,500Parag Agrawalhttps://www.twitter.com

Twitter, Inc. operates as a platform for public self-expression and conversation in real-time. The company’s primary product is Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products that enable advertisers to promote brands, products, and services, as well as enable advertisers to target an audience based on various factors, including who an account follows and actions taken on its platform, such as Tweets created and engagement with Tweets.

Twitter Fundamentals Summary

How do Twitter's earnings and revenue compare to its market cap?
TWTR fundamental statistics
Market CapUS$28.84b
Earnings (TTM)US$223.87m
Revenue (TTM)US$5.24b

128.8x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWTR income statement (TTM)
RevenueUS$5.24b
Cost of RevenueUS$1.92b
Gross ProfitUS$3.32b
Other ExpensesUS$3.09b
EarningsUS$223.87m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin63.30%
Net Profit Margin4.27%
Debt/Equity Ratio88.8%

How did TWTR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TWTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TWTR?

Other financial metrics that can be useful for relative valuation.

TWTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.6x
Enterprise Value/EBITDA53.4x
PEG Ratio7.1x

Price to Earnings Ratio vs Peers

How does TWTR's PE Ratio compare to its peers?

TWTR PE Ratio vs Peers
The above table shows the PE ratio for TWTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.4x
WB Weibo
17.8x22.7%US$5.5b
GOOGL Alphabet
19.7x14.1%US$1.5t
META Meta Platforms
12.3x13.6%US$458.5b
PINS Pinterest
39.8x27.5%US$13.2b
TWTR Twitter
128.8x18.2%US$28.8b

Price-To-Earnings vs Peers: TWTR is expensive based on its Price-To-Earnings Ratio (128.8x) compared to the peer average (22.4x).


Price to Earnings Ratio vs Industry

How does TWTR's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Earnings vs Industry: TWTR is expensive based on its Price-To-Earnings Ratio (128.8x) compared to the US Interactive Media and Services industry average (42.4x)


Price to Earnings Ratio vs Fair Ratio

What is TWTR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TWTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio128.8x
Fair PE Ratio29.2x

Price-To-Earnings vs Fair Ratio: TWTR is expensive based on its Price-To-Earnings Ratio (128.8x) compared to the estimated Fair Price-To-Earnings Ratio (29.2x).


Share Price vs Fair Value

What is the Fair Price of TWTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TWTR ($37.8) is trading below our estimate of fair value ($69.69)

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


Price to Earnings Growth Ratio

PEG Ratio: TWTR is poor value based on its PEG Ratio (7.1x)


Discover undervalued companies

Future Growth

How is Twitter forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWTR's forecast earnings growth (18.2% per year) is above the savings rate (1.9%).

Earnings vs Market: TWTR's earnings (18.2% per year) are forecast to grow faster than the US market (13.7% per year).

High Growth Earnings: TWTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: TWTR's revenue (16.2% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: TWTR's revenue (16.2% 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 (11.2%).


Discover growth companies

Past Performance

How has Twitter performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TWTR has a large one-off gain of $306.4M impacting its March 31 2022 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 -10.7% 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 (-37.6%).


Return on Equity

High ROE: TWTR's Return on Equity (3.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Twitter's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TWTR's short term assets ($7.5B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: TWTR's short term assets ($7.5B) exceed its long term liabilities ($6.5B).


Debt to Equity History and Analysis

Debt Level: TWTR has more cash than its total debt.

Reducing Debt: TWTR's debt to equity ratio has increased from 33.3% to 88.8% over the past 5 years.

Debt Coverage: TWTR's debt is not well covered by operating cash flow (7%).

Interest Coverage: TWTR's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TWTR has not reported any payouts.


Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure


CEO

Parag Agrawal (36 yo)

0.58

Tenure

US$30,351,222

Compensation

Mr. Parag Agrawal has been the Chief Executive Officer of Twitter, Inc. since November 29, 2021. Mr. Agrawal served as the Chief Technology Officer of Twitter, Inc. from October 2017 to November 2021. As C...


CEO Compensation Analysis

Compensation vs Market: Parag's total compensation ($USD30.35M) is above average for companies of similar size in the US market ($USD13.44M).

Compensation vs Earnings: Insufficient data to compare Parag's compensation with company performance.


Leadership Team

Experienced Management: TWTR's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: TWTR's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TWTR insiders have bought more shares than they have sold 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
  • Implied Market Cap: US$28.838b
  • Shares outstanding: 762.91m
  • 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 Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.