TWTR - Embedded Expectations Analysis - 2021 09 02
Twitter, Inc. (TWTR:USA) currently trades at recent peaks relative to UAFRS-based (Uniform) earnings, with a 46.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about MDAU growth, targeted conversations and tweets, and their Twitter ecosystem.Specifically, management may lack confidence in their ability to maintain monetizable daily active usage (MDAU) growth, replace Fleets with a unique format that addresses the same user needs, and drive more conversations in Spaces. Moreover, they may be overstating the potential of their bitcoin adoption to grow their business and the opportunities to grow their United States user base. Furthermore, they may lack confidence in their ability to create a solution to tweet directly to a specific community and enable experiences hosted by individuals or companies through an ecosystem model. Finally, they may have concerns about the financial impact of the slow start to the year, the quality of signals they get from users, and their incremental headcount investments.
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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