Can Twitter Survive the Current Downturn?

Twitter Inc (NYSE: TWTR) stock is in the news after Macquarie analyst Benjamin Schachter downgraded the stock to Neutral from Outperform. However, the analyst increased his price target to $42 from $36. The analyst thinks Twitter’s product changes will result in business improvements but take a lot of time. Schachter thinks Twitter’s usage will not increase rapidly in the near future.

Twitter is currently under pressure after the company purged over 1 million fake accounts. Schachter thinks this step will help the company but it will not affect the stock price in a positive way.

For this year Twitter Inc's revenue will be around 2,91 billion USD. This is according to the average of the analysts' estimates. This is rather significant more than 2017's revenue of 2,44 billion USD.

Historical revenues and results Twitter Inc plus estimates 2018

stock prices

The analysts expect for 2018 a net profit of 538 million USD. According to most of the analysts the company will have a profit per share for this book year of 69 cent. With this the price/earnings-ratio is 46,39.

For this year analysts don't expect the company to pay a dividend. The average dividend yield of the entertainment companies equals a poor 1 percent.

Based on the current number of outstanding shares Twitter Inc's market capitalization 23,1 billion USD.

At 15.50 the stock trades 1,97 percent higher at 32,01 USD.

Historical stock prices Twitter Inc past 10 years

stock prices twitterinc

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