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A Closer Look at Twitter Stock

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Shareholder returns and stock trends

Twitter (TWTR) has generated investor returns of -9.4% in the trailing-one-month period and 32.5% in the trailing-12-month period. The company’s share price has fallen 7.8% in the trailing-five-day period.

Peer companies Facebook (FB), Amazon (AMZN), Alphabet (GOOG), and Alibaba (BABA) have generated investor returns of 42.6%, 64.7%, 40.1%, and 90.6%, respectively, in the trailing-12-month period.

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Moving averages

On January 25, 2018, Twitter closed the trading day at $22.16. Based on this figure, here’s how the stock has fared in terms of its moving averages:

  • 10.8% above its 100-day moving average of $20
  • 3.6% below its 50-day moving average of $23
  • 7.7% below its 20-day moving average of $24

 What amount of debt is Twitter carrying?

Twitter is carrying total debt of $1.8 billion, which is the sum of its short-term debt of $0.08 billion and its long-term debt of $1.7 billion. Considering that the company has total capital of $6.6 billion, its total debt-to-total capital ratio is 26.8%.

Looking at the company’s debt in relation to its assets, equity, and EBITDA (earnings before interest, tax, depreciation, and amortization), we’ll find that it has debt-to-assets, debt-to-equity, and debt-to-EBITDA of 0.25, 36.70, and 5.90, respectively.

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Relative strength index

For the last 14 days, Twitter has reported a relative strength index (or RSI) of 33 compared to the RSIs of 55, 92, 88, and 70 recorded by Facebook, Amazon, Alphabet, and Alibaba, respectively, within the same period.

Analysts’ recommendations

Of the 38 analysts covering Twitter, seven have given it “buy” recommendations, ten have given it “sell” recommendations, and 21 have given it “hold” recommendations. Analysts’ stock price target for the company is $21.16, and their median price target for the company is $21.

A look at Twitter’s EBITDA numbers

Twitter’s EBITDA fell 5% to $300.5 million last year. Analysts expect the company to post EBITDA of $797.9 million this year, implying a potential fall of 8%.

Twitter’s shares are changing hands at price-to-EBITDA multiple of 54.8x.

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