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Review of Twitter (TWTR)
26 Apr 2022 (487 views)  

The stock price of Twitter over the past 52 weeks was in the range of $31.30 and $73.34. 

The price close on 25 Apr at $51.70 which is 65% above the low and 30% below the high.

Elon Musk offered to buy the stock at $54.20. The market has not moved up to this price as there is a risk that the purchase may not go through. 

Twitter is currently suffering a loss, as reflected by the EPS (TTM) of -$0.28.

The revenue, and net income for the past years are:
 
  Revenue N Income
  $mil $mil
2018 3,042 1,205
2019 3,459 1,465
2020 3,716 -1,135
2021 5,077 -221

If Elon Musk pays $44 billion to acquire Twitter, and wishes to have a return of 5%, he needs to see an annual profit of $2,200 million.

How is he going to turn the company around and show twice the profit reported prior to 2020?

The social media platforms are facing great competition. However, Elon Musk is able to think out of the box. He may have some workable ideas that can turn the company around.

Anyway, he will become the sole owner of Twitter and the company will be converted into a private company.

I will share some ideas on how Twitter can generate a new source of revenue, that can be huge. 

Tan Kin Lian

 


Review of Twitter (TWTR)
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The stock price of Twitter over the past 52 weeks was in the range of $31.30 and $73.34. 

The price close on 25 Apr at $51.70 which is 65% above the low and 30% below the high.

Elon Musk offered to buy the stock at $54.20. The market has not moved up to this price as there is a risk that the purchase may not go through. 

Twitter is currently suffering a loss, as reflected by the EPS (TTM) of -$0.28.

The revenue, and net income for the past years are:
 
  Revenue N Income
  $mil $mil
2018 3,042 1,205
2019 3,459 1,465
2020 3,716 -1,135
2021 5,077 -221

If Elon Musk pays $44 billion to acquire Twitter, and wishes to have a return of 5%, he needs to see an annual profit of $2,200 million.

How is he going to turn the company around and show twice the profit reported prior to 2020?

The social media platforms are facing great competition. However, Elon Musk is able to think out of the box. He may have some workable ideas that can turn the company around.

Anyway, he will become the sole owner of Twitter and the company will be converted into a private company.

I will share some ideas on how Twitter can generate a new source of revenue, that can be huge. 

Tan Kin Lian