Twitter offers various products and services for users, including Twitter that allows users to create, distribute, and discover content; and Vine and video, a mobile application that enables users to create and distribute short looping videos. The company was founded in 2006 and is based in San Francisco, California.
TWTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Twitter Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Twitter Inc ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 63.67%. In terms of the factors that were most noteworthy in this DCF analysis for TWTR, they are:
In the past 4.43 years, Twitter Inc has a compound free cash flow growth rate of 0.79%; that's better than 84.66% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately only 24.37% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Twitter Inc's effective tax rate, as measured by taxes paid relative to net income, is at 97 -- greater than 97.33% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PCOM, HBB, SSTI, GDDY, and ELTK can be thought of as valuation peers to TWTR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Last month, a bunch of users tweeted about how Twitter‘s image cropping algorithm seems to have a bias towards fair-skinned people. When users posted uncropped images containing both light and dark-skinned people, the social network’s algorithm often showed the light-skinned person in the preview. Trying a horrible experiment… Which will the Twitter algorithm pick: Mitch McConnell or Barack Obama? pic.twitter.com/bR1GRyCkia — Tony “Abolish (Pol)ICE” Arcieri 🦀 (@bascule) September 19, 2020 At that time, Twitter said, while its algorithm was tested for bias, it will conduct further investigations to resolve the issue. Last night, in an update, the company said it’s… This story continues at The Next Web Or just read more coverage about: Twitter
Facebook CEO Mark Zuckerberg, Google and Alphabet CEO Sundar Pichai and Twitter CEO Jack Dorsey will testify on Section 230 of the Communications Decency Act. The hearing will also cover the topics of privacy and "media domination."
Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai, and Twitter CEO Jack Dorsey have agreed to testify virtually before the Senate Commerce Committee on October 28th. The hearing will focus on the liability protections of Section 230, data privacy, and media consolidation, according to Politico.