Twitter stocks plunged 20 per cent on October 24, after the company released its third-quarter earnings results. The company blames product issues and ad targeting problems for the earnings miss.
Twitter stock outlook
Twitter enables users to exchange short (280-character) messages called tweets. According to the latest social media industry survey by Statista, Twitter ranks as one of the leading global networks based on the number of active users.
According to the latest data, Twitter has 330 million monthly active users. As of February 2019, Katy Perry was the most-followed celebrity on Twitter with almost 107 million followers.
In 2018, the company’s annual revenue reached $3.04 billion, with a net income exceeding $1.2 billion. Advertising is the company’s major revenue source.
In the third quarter of 2019, Twitter reported 145 million monetisable daily active users, which is 4 per cent higher than in the second quarter of 2019.
One of the largest US internet companies with a market capitalisation of almost $30 billion, Twitter is increasingly popular during various events. Live-tweeting during major TV airings and sporting events has become a popular way of customer engagement.
Twitter SWOT analysis
Twitter is one of the leading companies in its industry. SWOT analysis helps the company to retain its prominent position in the market, identifying the internal strategic factors, such as strengths and weaknesses, and external strategic factors, such as opportunities and threats. The strengths-weaknesses-opportunities-threats matrix for Twitter looks as follows:
S – Strengths:
- Powerful marketing tool with abundant viral potential
- Product innovation – successful track record of developing new products
- Strong brand portfolio and Go To Market strategies
- High level of customer satisfaction
- Successful mergers and acquisitions
W – Weaknesses:
- Limited access to other product segments outside its core business
- Lack of strong product demand forecasting, which results in missed opportunities
- Gaps in the product range, giving competitors a foothold in the market
O – Opportunities:
- Lack of competition on micro blogging
- Enormous opportunities for business communications with the development of e-commerce
- Greater confidence for online purchasing
T – Threats
- Intense direct and indirect competition
- Security issues
- Lack of solid sustainable revenue model
Twitter stock price analysis
According to the latest Q3 earning’s report, Twitter’s revenue came short of Wall Street analysts’ expectations, which caused a drastic decline of the TWTR stock price.
According to the company’s commentary, Twitter’s revenue was affected by the platform bugs and advertising headwinds – caused by lower-than-expected advertising in July and August.
The Twitter’s real Q3 performance vs the expected:
- Earnings per share: 17 vs 20 cents predicted
- Revenue: $823.7 million vs. $874.0 million predicted
Prior to the earnings report, Twitter shares were traded up 35 per cent in 2019, with a market capitalisation above $30 billion. The big Thursday’s stock downward move swallowed almost $6 billion of the Twitter’s market cap.
Trade Twitter - TWTR CFD
Twitter stock price prediction: will Twitter stock go up?
Historically, the Twitter stock price record high was $73.31 on December 26, 2019. The latest closing price for Twitter shares is $30.75 as of October 25, 2019.
According to the most recent Twitter stock price forecast by Walletinvestor, offering a 12-month price prediction, Twitter stock can be an awesome long-term investment. They believe Twitter shares can bring good returns and become profitable investment option. Based on their forecast, TWTR stock price can reach $83.864 in a year.
Another popular analytical resource, CNNbusiness, shares a more modest view on the Twitter stock performance. According to 44 analysts and their Twitter stock projection for the next 12 months, TWTR stocks will see a 26.83 per cent increase on its current price.
This positive view is also supported by the GovCapital forecast, indicating that Twitter could be a good portfolio addition. According to their prediction system, the Twitter stock price is expected to grow by 2.124 per cent, which makes it a good investment.
Twitter stock – buy or not
With contracts for difference, it does not matter whether your view of the Twitter share price forecast is positive or negative. You can always try to profit from the future price fluctuations, regardless of their direction.
Follow the latest Twitter stock news and track the TWTR live rates with Capital.com. Conduct your own technical and fundamental analysis to decide whether to buy or sell Twitter shares and include them into your investment portfolio.
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