[The Motley Fool] Twitter Inc (NYSE:TWTR)(TREND ANALYSIS) If you’ve been seeing more ads than usual on Facebook (NASDAQ:FB) lately, it’s because ad spending is accelerating faster than anticipated. eMarketer recently published a forecast estimating 2015 social-media ad spend at $25.14 billion, about 6% higher than it expected back in April.
One company not participating in that higher-than-expected growth, however, is Twitter (NYSE:TWTR). The company’s slow user growth in 2015 has led management to revise its initial outlook for the year downward, with analysts following suit. Now, three quarters into the year, eMarketer thinks it has a pretty good feel for how the company is being affected by its slowed user growth.
61.8% estimated ad revenue growth
Twitter is still the fastest-growing company of all the major social networks, but its estimated 61.8% growth in ad revenue this year is a decline from the 66.9% rate eMarketer originally forecast
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Twitter Inc (NYSE:TWTR) stock is currently trading 51.88% below its 52-week-high, 28.22% above its 52-week-low. The 1-year stock price history is in the range of $21.01 – $55.99. Twitter Inc (TWTR) has a price to book ratio of 4.04 versus Technology sector average of 2.98. TWTR stock price has underperformed the S&P 500 by 17.7%. The Internet Content & Entertainment company is currently valued at $18 billion and its share price closed the last trading session at $26.94. The stock has a 50-day moving average of $27.17 and a 200-day moving average of $36.63.
Twitter Inc (TWTR) current short interest stands at 40.39 million shares. It has increased by 5% from the same period of last month. Around 7% of the company’s shares, which are float, are short sold. With a 10-days average volume of 14.51 million shares, the number of days required to cover the short positions stand at 2.8 days.
The company is expected to announce next quarter earnings on October 26, at consensus estimate of $-0.25. Twitter Inc (TWTR) reported last quarter earnings on July 28. The Internet Content & Entertainment company announced earnings per share of $-0.19 against a consensus Street estimate of $-0.24, beating the average estimate by $0.05. This corresponds to a decrease of $0.01 compared to the same quarter of the previous fiscal year.
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There are currently forty analysts that cover Twitter Inc stock. Of those forty, sixteen have a Buy rating, twenty-three have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $38.7.
A recent analyst activity consisted of Citigroup reiterating their Neutral stance on September 24. Citigroup decreased price target from $37 to $30. This corresponds to a 11.36% upside from the last closing price. On the date of report, the stock closed at $26.6.
Moffett Nathanson initiated their coverage on the stock with Neutral rating on September 8, and fixed their price target at $30. This corresponds to a 11.36% upside from the last closing price. On the date of report, the stock closed at $27.18.
Another research firm was CanaccordGenuity who reiterated their Buy stance on September 4. CanaccordGenuity decreased price target from $45 to $40. This translates to a 48.48% upside from the last closing price. On the date of report, the stock closed at $28.15.
Twitter, Inc. provides online social networking and microblogging service. The Company offers users the ability to follow other users’ activity, read, and post tweets. Twitter serves customers worldwide.