Will Tencent (OTC:TCTZF) shadow Twitter price growth?


USD 53.70  0.21  0.39%   

It looks like Tencent Holdings will continue to recover much faster as its share price surged up 3.24% today to Twitter's 22.2379%. As many millenniums are excited about communication services space, we are going to shadow both, Twitter and Tencent Holdings as a potential short-term opportunity. We are going to discuss some of the competitive aspects of both Twitter and Tencent.
Published over two months ago
View all stories for Twitter | View All Stories
By analyzing existing basic indicators between Twitter and Tencent, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Tencent with a short position in Twitter. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Twitter has an asset utilization ratio of 81.18 percent. This connotes that the company is making $0.81 for each dollar of assets. An increasing asset utilization means that Twitter is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Twitter's Liquidity

Twitter financial leverage refers to using borrowed capital as a funding source to finance Twitter ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Twitter financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Twitter's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Twitter, but it might be worth checking our own buy vs. sell analysis

Detailed Perspective On Twitter

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Twitter revenue. Based on the latest financial disclosure, Twitter reported 5.23 B of revenue. This is 64.43% lower than that of the Communication Services sector and significantly higher than that of the Internet Content & Information industry. The revenue for all United States stocks is 44.57% higher than that of Twitter. As for Tencent Holdings we see revenue of 560.29 B, which is much higher than that of the Internet Content & Information

560.3 B
TWTR5.23 Billion0.92
TCTZF560.29 Billion99.08

Will Twitter latest spike continue?

Mean deviation is down to 1.68. It may connote a possible volatility fall. Twitter shows above-average downside volatility for the selected time horizon. We advise investors to inspect Twitter further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Twitter future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Twitter's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Twitter's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While many of the other players under the internet content & information industry are still a bit expensive, Twitter may offer a potential longer-term growth to retail investors. To conclude, as of the 4th of October 2022, we believe Twitter is currently undervalued. It follows the market closely and projects below average probability of distress in the next two years. Our primary 90 days buy vs. sell advice on the enterprise is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Twitter. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com