Twitter Inc. (TWTR) Showing Weaknesses or Patiently Awaiting Momentum

Scott Kessler, S&P Capital IQ lead tech analyst, drew attention to Twitter Inc. (NYSE:TWTR) execution during an interview on CNBC. In general the company is selling high, slightly lower than $50, after the slump period in May, when it was sold at about $30 per share. The price has been rebounding slowly up to this point, where there is little certainty in which direction it will head on from here, making prospects for Twitter Inc. (NYSE:TWTR) quite dim for analysis.

twitter twtr facebook fb

“In terms of Twitter, clearly, the thoughts about the stock and the company have improved, we think the addition of Anthony Noto as the CFO is going to help, but what it comes down to is they’re increasing their capabilities around monetization, we’ve seen indications of that and we’re wondering what’s going to happen next. But the valuation still seems pretty full to us and we have a ‘Hold’ opinion on that stock,” Scott Kessler said.

The current state of affairs for Twitter Inc. (NYSE:TWTR) promises a highly unpredictable future, although the company has been showing good progress and intends of reshaping its strategy in a favorable manner. Twitter Inc. (NYSE:TWTR) has a Forward Price to Sales Ratio 22 for the this year, while for next year the same metric stands at 13. In general, its performance resembles Facebook Inc. (NASDAQ:FB), yet due to the volatile nature of the business it is unknown how the swings in the stock price will be compared to the social network’s performance.

S&P Capital announced its ‘Hold’ rating for the Twitter Inc. (NYSE:TWTR) stock even from its high $30’s meaning probably that the company exceeded expectations and has potential impressing anew, but it might also be a glimpse of confidence spread among the investors and customers, which cause the price to rise. Taking into consideration the fact that the media sector is volatile by nature and valuations are pretty stretched for the companies involved, we can safely infer that patience might keep distant unpleasant surprises.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!