Twitter Profitability Analysis

TWTR -  USA Stock  

USD 68.69  3.00  4.18%

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.

Search Current Profitability Trends 

 
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As of 07/26/2021, Price to Sales Ratio is likely to grow to 5.34, while Return on Sales is likely to drop (0.13) . Twitter Operating Income is relatively stable at the moment as compared to the past year. Twitter reported last year Operating Income of 26.66 Million. As of 07/26/2021, Income Tax Expense is likely to grow to about 15.6 M, while Accumulated Other Comprehensive Income is likely to drop (81.7 M).

Twitter Revenues

4.01 BillionShare
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 underlying business (such as 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 Book Value Per Share vs. Net Income 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 net income category among related companies. It is currently regarded as top stock in book value per share category among related companies . . Twitter Net Income is relatively stable at the moment as compared to the past year. Twitter reported last year Net Income of (1.14 Billion)

Twitter Book Value Per Share vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Twitter 
Net Income 
 = 
(Rev + Gain) 
-  
(Exp + Loss) 
(1.06 B)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Twitter 
Book Value per Share 
 = 
Common Equity 
Average Shares 
9.72 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Twitter Book Value Per Share Comparison

Twitter is currently under evaluation in book value per share 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.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income-79.6 M-81.7 M
Consolidated Income-525.4 M-566.9 M
Net Income-1.1 B-1.2 B
Net Income Common Stock-525.4 M-566.9 M
Operating Income26.7 M28.8 M
Preferred Dividends Income Statement Impact32.2 M32 M
Income Tax Expense14.4 M15.6 M
Net Income Per Employee-205.9 K-211.3 K
Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. 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 6100 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.

Twitter Profitability Trends

Twitter profitability trend refers to the progression of profit or loss within a business. An upward trend means that Twitter's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Twitter's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Twitter Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Twitter different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Twitter in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Twitter's future profitability.

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

Correlation analysis and pair trading evaluation for Twitter and Omnicom Group. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

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?

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Consumer Goods
Consumer Goods Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Consumer Goods theme has 43 constituents.
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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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.
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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.