Twitter Profitability Analysis

TWTR -  USA Stock  

USD 36.93  0.36  0.97%

For Twitter profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Twitter to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Twitter utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Twitter's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Twitter over time as well as its relative position and ranking within its peers. Additionally, take a look at World Market Map.
  
Refresh
Is Twitter's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Twitter. If investors know Twitter will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Twitter listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Twitter is measured differently than its book value, which is the value of Twitter that is recorded on the company's balance sheet. Investors also form their own opinion of Twitter's value that differs from its market value or its book value, called intrinsic value, which is Twitter's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Twitter's market value can be influenced by many factors that don't directly affect Twitter's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twitter's value and its price as these two are different measures arrived at by different means. Investors typically determine Twitter value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twitter's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Twitter Cash Flow from Operations vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Twitter's current stock value. Our valuation model uses many indicators to compare Twitter value to that of its competitors to determine the firm's financial worth.
Twitter is currently regarded as top stock in z score category among related companies. It is currently regarded as top stock in cash flow from operations category among related companies making about  496,666,667  of Cash Flow from Operations per Z Score. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Twitter by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Twitter's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Twitter's earnings, one of the primary drivers of an investment's value.

Twitter Cash Flow from Operations vs. Z Score

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Twitter 
Z Score 
 = 
Sum Of  
 
5 Factors 
3.0
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Twitter 
Operating Cash Flow 
 = 
EBITDA 
-  
Taxes 
1.49 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Twitter Cash Flow from Operations Comparison

Twitter is currently under evaluation in cash flow from operations category among related companies.

Twitter Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Twitter, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Twitter will eventually generate negative long term returns. The profitability progress is the general direction of Twitter's change in net profit over the period of time. It can combine multiple indicators of Twitter, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Twitter, Inc. operates as a platform for public self-expression and conversation in real time. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California. Twitter operates under Internet Content Information classification in the United States and is traded on New York Stock Exchange. It employs 5500 people.

Twitter Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Twitter. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Twitter position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Twitter's important profitability drivers and their relationship over time.

Use Twitter in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Twitter position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Twitter will appreciate offsetting losses from the drop in the long position's value.

Twitter Pair Trading

Twitter Pair Trading Analysis

The ability to find closely correlated positions to Twitter could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Twitter when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Twitter - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Twitter to buy it.
The correlation of Twitter is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Twitter moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Twitter moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Twitter can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Twitter position

In addition to having Twitter in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Top Cryptocurrency Thematic Idea Now

Top Cryptocurrency
Top Cryptocurrency Theme
Dynamically computed list of top cryptocurrencies sorted bymarket capitalization. The Top Cryptocurrency theme has 55 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Top Cryptocurrency Theme or any other thematic opportunities.
View All  Next Launch Top Cryptocurrency
Additionally, take a look at World Market Map. Note that the Twitter information on this page should be used as a complementary analysis to other Twitter's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for Twitter Stock analysis

When running Twitter price analysis, check to measure Twitter's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Twitter is operating at the current time. Most of Twitter's value examination focuses on studying past and present price action to predict the probability of Twitter's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Twitter's price. Additionally, you may evaluate how the addition of Twitter to your portfolios can decrease your overall portfolio volatility.
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
To fully project Twitter's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Twitter at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Twitter's income statement, its balance sheet, and the statement of cash flows.
Potential Twitter investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Twitter investors may work on each financial statement separately, they are all related. The changes in Twitter's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Twitter's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.