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Twitter Inc TWTR

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Twitter’s Goal of $7.5 Billion Revenue By 2023 Is Achievable; Raising FVE to $52; Stock Overvalued

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

We have raised our fair value estimate of Twitter to $52 from $44. The firm used its analyst day to detail how it has carved a path to accelerate top-line growth, which will likely create further operating leverage in the long run. Twitter has taken steps to scale its platforms, enhance its app for consumers and advertisers, improve its direct response ad capabilities, and invest in other user monetization options, all of which accelerated product improvements or launches, drove user growth, and attracted advertisers, which increased user monetization.

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Company Profile

Business Description

Twitter is an open distribution platform for and a conversational platform around short-form text (a maximum of 280 characters), image, and video content. Its users can create different social networks based on their interests, thereby creating an interest graph. Many prominent celebrities and public figures have Twitter accounts. Twitter generates revenue from advertising (90%) and licensing the user data that it compiles (10%).

Contact
1355 Market Street, Suite 900
San Francisco, CA, 94103
T +1 415 222-9670
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 5,500

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