Stock (Symbol) | Stock Price | |
Twitter (TWTR) |
$48 |
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Data is as of | Expected to Report | Sector |
February 13, 2015 |
Apr 27 – May 1 |
Technology |
Sharek’s Take | ||
Twitter jumped from $40 to $48 this month after announced record earnings that beat the street. Sales doubled in 2014 and could double again in 2015. Last qtr, the company made 12 cents, blowing past the 6 cent estimate. Before that, the most the company ever made since going public was 2 cents a share, and had beaten the street by 3 cents in 3-of-4 qtrs. Is this a new awakening in profitability? Could be. Although the 128 P/E ratio is high, high growth/high P/E stocks as they are leading the stock market, and I see TWTR making $1 in profits next year. With triple digit profit growth now and in the future forecasts, there’s a possibility this stock could roll higher. Even if it doesn’t I love the long-term outlook of this company. | ||
One-Year Chart | ||
I love the triple-digit profit growth TWTR has been getting, and that’s expected to continue through most of this year. The only negative is the 126 P/E but that’s the era we are in today — rapid growth is very expensive. | ||
Earnings Table | ||
Revenue soared 97% last qtr as profits jumped 500%. TWTR was on a roll of beating the street by 3 cents in 3 of the last 4 qtrs. But last qtr it just met estimates, which hurt momentum. The 6 cent beat turned momentum up. Annual Profit Estimates moved a little bit higher. Quarterly estimates show triple-digit profit growth could continue at least 3 more qtrs. |
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Fair Value | ||
I think TWTR could make $1 next year, and buy then my purchase could be through of as a good move. But line many stocks in the current market, it’s priced high because its growing so fast. | ||
Ten-Year Chart | ||
Wild ten-year chart because TWTR was all-hyped-up when it first went public. Then people forgot about the stock just as profitability spiked. | ||
Power Ranking | Bottom Line | |
Growth Portfolio
6 of 24 |
Twitter is one of America’s top franchises and shares of such stocks are being sent higher by investors thirsty for growth. I feel this is a great franchise to own for the long-term and we have the added bonus that the stock is timely right now and may keep moving higher. |
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Aggressive Growth Portfolio
5 of 12 |