What is going on with TWTR?

[Baron]

Here are their numbers for Q1 2016, which basically shows that they lost about $79 million, which in layman's terms means they lost roughly $866,000 per DAY.

 

[OptionGuru]

TWTR is today what TSLA will be in less than a decade.

I think TSLA is here to stay.

A few years ago electric cars and green energy might have been a fad and not taken seriously but today appears to be different. Governments are more committed to a carbon-less World.

 

[RGLD]

Baron, I understand what you are saying... They are losing money every quarter which is why... I am sooo confused...

BEAT EPS????? According this, they been beating EPS every quarter. What the hell am I smoking.... :[

EPS = NET INCOME / Shares outstanding.

Since the net income is always negative wouldn't that give a negative EPS?

 

[RGLD]

I think I know what is happening though. Although their Revs beat expectations, after all expenses paid they still lose a good chunk of money.

I would suspect Analyst are setting these Estimates low before they can break even on Cashflow. However, I'd expect this to be factored in to the stock price already. But even beating "good" estimates on rev, the net income is still negative. I don't know what investors are expecting than...

 

[J_Smith]

Hi Baron,

Thank you for your input.

I normally don't look at income sheets, I just look at Earnings Per Share & Revenue.

https://finance.yahoo.com/quote/TWTR/analysts?p=TWTR


If you look at Earnings history it says they been beating EPS for the last 4 quarters?! How is that possible??

Also Growth Estimates are 30% this year... Do my eyes play me false????


P.S.

I am 100% for FB. I never bought a share of TWTR in my life but I did think about writing puts at $15.

I would look at buying calls right now if I were you!

J_S

 

[felixbocharov]

What do you mean EPS? TWTR has never earned one penny after expenses. In fact, they lose about a half billion dollars per year. Here's their 3-year breakdown:

View attachment 165672

Translation: THEY MAKE NO MONEY. In fact, all they've done so far is LOSE INVESTOR'S MONEY. Of course their ass is going to get handed to them.

Twitter is full of bots and fake accounts and the whole idea of this social network is a little bit weird, I mean, who even came up with this idea?

 

[RGLD]

I love how they are in the red and managed to get more bad press by banning Milo Yiannopoulos.

Now this new story is turning into a circus ( not in a good way for TWTR ). Twitter can go to hell in a few years.

 

[Jamie J.]

I'm so curious if people are ready to buy it after the earnings and why?

 

[JackRab]

First of all... analysts are f#%$ing idiots who generally only do hold or buy ratings or otherwise they lose their contacts at the firms they look at... fact!

Second, Twitter is losing out on Instagram (= Facebook). Has less users. Users are unhappy with limited characters. They are playing catch-up with others... and losing.

Typical case of being the first, but not adapting to changes and therefore in terminal decline.

 

[J_Smith]

The 19.50 calls should do fine.

Give it bout 10 trading days, which is 2 weeks, which is Aug-12 strike - if you go out further then look at buying the 20 and selling the 25 calls - you will have to look up the premiums to pick the best month/s.

Stop - 2 bars back!

J_S