TWTR - Embedded Expectations Analysis - 2017 11 15
− Twitter, Inc. (TWTR:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 20.9x Uniform P/E, suggesting bearish expectations for the firm. While this offers a buying opportunity in the long-run, management concerns about their margins and ad products suggest near-term upside may be limited.
− Specifically, management appears concerned about the sustainability of improved advertising product performance, and strength in video and direct response ad formats. They may also lack confidence in their ability to continue expanding margins. As such, although upside remains warranted over the long-run, this upside is likely limited in the near-term.
Twitter provides products and services for people, organizations, advertisers, developers and platform and data partners. The company's product, Twitter, is a global platform for public self-expression and conversation in real time. The company's mobile application, Periscope, lets anyone broadcast and watch video live with others. The company's products and services for advertisers include Promoted Products such as Promoted Tweets, Promoted Accounts, and Promoted Trends. The company's products for developers and data partners provide tools and public application programming interfaces to build applications and other products that utilize Twitter data and syndicate and distribute Twitter content across their properties.
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