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Valens Research

TWTR - Embedded Expectations Analysis - 2021 06 17

Twitter, Inc. (TWTR:USA) currently trades at recent peaks relative to UAFRS-based (Uniform) earnings, with a 43.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about the retention and growth of their customer base, the potential of new products, and ad targeting quality

Management may lack confidence in their ability to meet their 20% mDAU growth guidance, sustain overall revenue growth, and manage rising costs. In addition, they may be exaggerating the potential of their new commerce and subscription products and the new capabilities of their user onboarding initiatives. Furthermore, management may lack confidence in their ability to improve ad targeting quality, retain users that joined during the pandemic, and further capitalize on live events. Finally, they may have concerns about the impact of advertiser behavior trends and their new website click format
Underlying
Twitter Inc.

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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Valens Research
Valens Research

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