Twitter (TWTR) is in my Watchlist

 Last Update 11/08/20

Twitter (TWTR)

What am I trading?

Twitter (TWTR) is an international social media platform for conversation operating primarily in the United States and  also around the world. You can tweet short messages or videos to promote yourself or your business. Lately, this platform has come under fire for a perceived censorship. Many people are not happy with the direction that management is taking for this platform. Twitter is headquartered in San Francisco, California.

Finviz:  Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States and internationally. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. 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. In addition, the company offers a set of tools and public application programming interfaces for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.  

Some Quick Observations

Basic
Optionable	Yes	I do credit spreads sometimes
Shortable	Yes	I play both sides of the market
Share Price > $5	43.12	No Penny Stocks
Market Cap	34.76B	Must be greater than 300M. We want no Penny Stocks

Valuation
Profitability - Past 5 yrs	-	PE Positive
Profitability Q/Q	49.73	PE Positive
Sales Growth past 5 yrs	19.80%	10% growth the last 5 years
Projected Sales Growth 5 yrs	13.70%
EPS	-1.58
Book Value per share	9.88

Financial
Debt to Equity	0.44	A good debt to equity ratio is around 1 to 1.5.
Current Ratio	4.4	a current ratio of 1.5 or above is considered healthy, while a ratio of 1 or below suggests the company would struggle to pay its liabilities and might go bankrupt
Quick Ratio	4.4	A result of 1 is considered to be the normal quick ratio. ... A company that has a quick ratio of less than 1 may not be able to fully pay off its current liabilities in the short term, while a company having a quick ratio higher than 1 can instantly get rid of its current liabilities

Buy it?
Current Price	43.12
Target Price	43.17	Produced by Analysts
Bargain	0.05	A positive number indicates trading under Target Price
Graham Number		Negative number is a good value
Analysts Ranking	2.8	1=Buy 5=Sell
Earning	Oct 29 AMC	Next Earning Date

What do the Experts Say?

Interactive Broker Research:

Financial Summary

BRIEF: For the six months ended 30 June 2020, Twitter Increvenues decreased 8% to $1.49B. Net loss totaled $1.39Bvs. income of $1.31B. Revenues reflect Advertising services segment decrease of 60% to $562M, Data licensing and other segment decrease of 45% to $121.4M, United States segment decrease of 6% to $833.3M, Rest of World segment decrease of 11% to $418.4M.

 

Ranking = HOLD

In late October, Pivotal Research Group reiterated their buy to 50.75 and a high range of 64.

I don't see this happening. And I'm not overly impressed with the company.

My Thoughts:

I think that Twitter is going to miss Donald Trump. I personally do not use Twitter that much. I tried to use it to follow stocks and see what people were saying about them. But I find that Twitter is a little too overwhelming and for me hard to sort through the information that I desire. Currently, I use Twitter to post a few updates on some of the stocks that I'm either buying or have on my watch list.

Conclusion: 

Twitter is on my watch list. I'm not in a hurry to buy it. But I would watch it to short it, especially if our economy and the stock market starts to decline.  I am just not that impressed with this company.