1/13/2024 0 Comments Twitter stock futures![]() Despite the drastic fall in earnings and no growth in revenue for the first 3 quarters Twitter’s shares have soared, bringing us to the conclusion that it is now poised to fall. Further, the company reported $660 million of cash inflows from operating activities for the first nine months. ![]() In Q3 2020, Twitter recovered slightly as revenue was recorded at $936 million, up 14% y-o-y and earnings were recorded at $0.04 compared to $0.05 in the same period of the previous year. We believe the stock, after the recent rally, is overvalued.ĭuring the Covid-19 crisis, Twitter saw its revenue remain flat in the first 3 quarters of 2020, while earnings fell, despite the increase in their daily audience. The company has seen a high revenue growth over recent years, and its P/S multiple has remained steady between 20. ![]() TWTR’s stock grew from $32 at the end of 2019 to $47 now, compared to the S&P 500 which gained 17% since end of 2019. Having grown by 47% since the end of 2019, Twitter’s stock (NYSE:TWTR) seems to be overvalued at the current price. In addition, the EPS figure will likely be $0.63 which coupled with the P/E multiple of around 110x will lead to Twitter’s valuation of $70, about 29% upside compared to the current market price. In FY 2022 we expect revenue to further grow to $5.4 billion. We expect Twitter’s revenues to go up to $5 billion in 2021 while earnings are expected to be $0. Despite the recent fall post Q3 earnings, we believe the stock has an upside potential in the medium term. Further, the company reported $1.16 billion of cash inflows from operating activities for the first nine months. The company also had a one-time net litigation charge of $766 million to settle a shareholder class action lawsuit partially offset by an insurance recovery. This was led by an increase in total ad engagements (6% y-o-y) and Cost per engagement (CPE) (33% y-o-y). The growth was led by advertising revenue which was $1.14 billion, up 41% y-o-y. In recently released Q3 2021 earnings, Twitter saw revenue grow to $1.28 billion, up 37% y-o-y. Twitter’s Stock Fell Post Earnings, Time To Enter?Īt its current price of $54, Twitter’s stock (NYSE:TWTR) has a good upside potential. In addition, the EPS figure will likely be $0.63 which coupled with the P/E multiple of around 110x will lead to Twitter’s valuation of $70, about 70% upside compared to the current market price.īelow you’ll find our previous coverage of Twitter’s stock where you can track our view over time. We expect Twitter ‘s revenues to go up to $5 billion in 2021 while earnings are expected to be $0.
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