Advertisement
New Zealand markets closed

  • NZX 50

    11,805.09
    -141.34 (-1.18%)
     

  • NZD/USD

    0.5967
    +0.0017 (+0.29%)
     

  • NZD/EUR

    0.5557
    +0.0017 (+0.30%)
     

  • ALL ORDS

    7,842.20
    -95.30 (-1.20%)
     

  • ASX 200

    7,581.50
    -101.50 (-1.32%)
     

  • OIL

    84.01
    +0.44 (+0.53%)
     

  • GOLD

    2,350.40
    +7.90 (+0.34%)
     

  • NASDAQ

    17,430.50
    -96.30 (-0.55%)
     

  • FTSE

    8,078.86
    +38.48 (+0.48%)
     

  • Dow Jones

    38,085.80
    -375.12 (-0.98%)
     

  • DAX

    17,917.28
    -171.42 (-0.95%)
     

  • Hang Seng

    17,707.38
    +422.84 (+2.45%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • NZD/JPY

    92.9930
    +0.4970 (+0.54%)
     

Twitter (TWTR) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·2-min read

Twitter (TWTR) closed the most recent trading day at $33.62, moving -1.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the short messaging service had lost 21.32% in the past month. In that same time, the Computer and Technology sector lost 14.1%, while the S&P 500 lost 7.66%.

Twitter will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. On that day, Twitter is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 15.79%. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, up 21.9% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Twitter. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

ADVERTISEMENT

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 41.86% lower. Twitter is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Twitter's current valuation metrics, including its Forward P/E ratio of 43.25. For comparison, its industry has an average Forward P/E of 44.82, which means Twitter is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Twitter, Inc. (TWTR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research