What’s Next For Twitter’s Stock?

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[Updated 01/10/2022] twitter update

twitter stock That’s down 33% since the Q3 2021 earnings release. The share price fell shortly after 2021 third quarter earnings as a loss of $536.7 million, primarily due to a one-time net litigation fee of $766 million to settle a shareholder class action lawsuit, and partly by an insurance recovery. was offset. Prices fell further after the announcement of the resignation of Jack Dorsey. Despite the recent decline after third-quarter earnings, we believe the stock has the potential to rally in the medium to long term.

we expect twitter earnings It is expected to go up to $5 billion in 2021, while earnings for 2021 are expected to be $0.37. We expect revenue to grow to $5.4 billion in fiscal 2022. Furthermore, the EPS figure is likely to be $0.63 combined with a P/E multiplier of approximately 110x Twitter Rating of $70, up almost 70% over the current market price.

Below you’ll find our previous coverage of Twitter’s stock where you can track our views over time.

[Updated 11/03/2021] Twitter Stock Drops Post-Earnings, Time to File?

At its current price of $54, twitter stock Has a nice upside potential. In its recently released Q3 2021 earnings, Twitter saw a 37% increase in revenue to $1.28 billion. The increase was led by advertising revenue, which stood at $1.14 billion, up 41% year-over-year. This was due to an increase in total ad engagement (6% year-on-year) and cost-per-interaction (33% year-over-year). The company also had a one-time net lawsuit fee of $766 million to settle a shareholder class action lawsuit that was partially offset by insurance recovery. In addition, the company reported $1.16 billion in cash flow from operating activities for the first nine months. Despite the recent decline following third-quarter earnings, we believe the stock has the potential to rally over the medium term.

We expect Twitter revenue to reach $5 billion in 2021, while earnings for 2021 are expected to be $0.37. We expect revenue to grow to $5.4 billion in fiscal 2022. Furthermore, the EPS figure is likely to be $0.63, which, combined with a P/E multiplier of approximately 110x, would move Twitter’s valuation to $70, up nearly 29% compared to the current market price.

[Updated 01/14/2021] Is Twitter’s Stock Move Overdone?

With an increase of 47% since the end of 2019, twitter stock It appears to have been overvalued at the current price. TWTR stock rose from $32 to $47 at the end of 2019, compared to a 17% increase since the end of 2019 compared to the S&P 500. The company has seen high revenue growth in recent years, and its P/S multiple remains stable. 2017 and 2019. We believe the stock is overvalued after the recent rally.

During the COVID-19 crisis, Twitter saw its revenues remain flat in the first 3 quarters of 2020, while earnings declined, despite an increase in their daily viewership. In Q3 2020, Twitter improved slightly as revenue was recorded at $936 million, up 14% yoy and earnings were recorded at $0.04 compared to $0.05 in the same period last year. In addition, the company reported $660 million in cash flow from operating activities for the first nine months. Despite a sharp drop in earnings and no growth in revenue for the first 3 quarters, Twitter shares have risen, leading us to conclude that it is now headed for a decline.

We expect Twitter revenue to remain flat at $3.5 billion for 2020. In addition, its net income is expected to fall to $0.4 billion, reducing its EPS figure to $0.54 in 2020. Thereafter, revenue is expected to grow to $3.8 billion in 2021. Furthermore, the EPS figure is likely to be flat at $0.55, which, combined with a P/E multiplier of about 80x, would move Twitter’s valuation to around $44, down about 7% compared to the current market price.

[Updated 06/25/2020] Is Twitter stock peaking?

After a rally of 30% since March 23, we are confident twitter stock There is no room for growth based on its valuation. Despite this rally, Twitter’s stock has outperformed the S&P 500 index over the past three months — with the latter gaining 40%. The recovery was first seen after the Fed’s multi-billion dollar stimulus package, which suppressed near-term survival concerns. One of the primary reasons the stock saw further growth is that the company’s user base is expanding as users can find real-time news and discuss current developments on the platform. In Q1 2020, the company saw a 24% increase in average monetizable daily active users.

The company has seen steady revenue growth in recent years, but its P/S multiplier has remained nearly flat. We believe there is not much room for the stock to rise following the recent rally and potential weakness from the slowdown induced by the Covid outbreak.

Some of this growth over the past two years was helped by the 42% increase Twitter’s revenue saw from 2017 to 2019, while its profit grew — from $108 million in 2017 — to $1.5 billion in 2019.

Twitter’s P/S multiple remained flat at 7x from 2017 to 2019 and is currently at the same level.

effect of coronavirus

The global spread of coronavirus has led to lockdowns in various cities across the world, affecting industrial and economic activities. Due to the stay-at-home order, use of the social media platform has increased, along with Twitter, leading to a 24% year-on-year increase in average monetizable daily active users in Q1 2020. However, revenue growth slowed in Q1 2020 as companies capped their advertising spend. The uncertainty of the coronavirus. We believe this trend in Twitter’s Q2 results will result in a content hit to the top line for most of the quarter.

There are many companies that look like a Better bet than TWTR stock, as well, twitter peer comparison Summarizes how the company performs against peers on key metrics.

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Return January 2022

mtd [1] 2022

YTD [1] 2017-22

Total [2] TWTR Return -5% -5% 151% S&P 500 Return 0% 0% 114% Trefis MS Portfolio Returns -2% -2% 285% [1] month-to-date and year-to-date as of 1/5/2022

[2] Cumulative total return since the end of 2016

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