TWTR – Market expectations are for Uniform ROA to fade, and management may be concerned about their topics product, advertisers, and development
May 20, 2020
- Twitter, Inc. (TWTR:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 49.7x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about their topics product, advertisers, and development issues
- Specifically, they may have concerns about the quality of their topics discovery feature, and they may lack confidence in their ability to enhance topics timeline prompts and convince new and returning users to use topics. In addition, they may be exaggerating their focus on addressing misleading information, and they may be concerned about their development speed issues and the sustainability of advertiser product and service launches. Also, they may lack confidence in their ability to establish a distributed workforce outside of San Francisco