TWTR – Market expectations are for Uniform ROA expansion, but management may have concerns about their product initiatives and monetization
December 13, 2021
- Twitter, Inc. (TWTR) currently trades above corporate and historical averages relative to Uniform earnings, with a 33.2x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to expand to 15%, accompanied by 5% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to fade to 8% in 2022, accompanied by 19% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $41, representing approximately 5% equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about their product initiatives and monetization.