Description
Few stocks have been in the news as much as Twitter off late, given the huge media attention after Elon Musk’s bid to acquire the social media giant. The $44 billion takeover of the giant is on hold with an uncertain future with heavy allegations against the micro-blogging platform for its ‘bot-friendly’ policies and a misrepresentation of the number of spam accounts. It is worth highlighting that Twitter delivered a mixed set of results last year, with a rise in revenue but a fall in earnings. The company has continued to make progress over its revenue and consumer products portfolio. Twitter iterated on communities, topics, spaces, and onboarding flow to grow its audience. The performance of ads has grown faster than revenue from ads. Twitter is now operating under a General Management model where resources of cross-function are owned by GM across core technology, revenue, and consumer who are responsible for providing input. The attention has been increased to important metrics and data all over the company, starting at the top, enabling faster learning and more accountability. Besides, Twitter has made reallocations for many incremental investments for the current year. A positive result has been seen for the decisions made by the company to make trade-offs and reallocate resources to hold the growth of expenses. Whether the $44 billion valuation is worth it or not is to be seen. We maintain our ‘Hold’ rating on their stock with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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