With Twitter Inc (TWTR) at All-time Low, is Now a Good Time to Buy?


Shares of Twitter Inc (NYSE:TWTR) stock are at an all-time low, yet nothing major has really caused much harm to the company’s revenue expectations. Quarter after quarter, the company seems to beat the consensus forcast on Wall Street, and last quarter the company blew away The Street’s EPS forcast, yet shares continue to decline.

Perhaps it’s because Twitter (NYSE:TWTR) still is losing money, and many investors don’t see the same potential for growth that they once did, but at a price below the original IPO, it seems incredibly tempting to jump on board. I remember how much regret I had in not getting in on the original IPO, after the stock was trading in the $50 range. I would have given anything to go back in time and buy at the IPO price. Surely most investors would have as well. Little did we know that just a few months later the stock would be at an all time low.

With co-founder Jack Dorsey back in the drivers seat, surely Twitter Inc (NYSE:TWTR) has a lot planned for 2016. Perhaps we will see more acquisitions, more partnerships, and more methods for the company to monetize their social platform. We saw one step in this progression today, as the company integrated Periscope into their timelines and profiles. I expect we will see a lot more in the coming months as Dorsey tries to get this stock back up to where it was just several months ago.

The stock is down 1.32% or $0.26, hitting $19.39 per share. Approximately 9.87M shares traded hands. TWTR shares have declined 46.11% since June 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 38.62%.

From a total of 29 analysts covering Twitter (NYSE:TWTR) stock, 13 rate it a “Buy”, 2 a “Sell”, and 14 a “Hold”. This means that 45% of the ratings are positive. The highest target price is $56 while the lowest target price is $22. The mean of all analyst targets is $34.39 which is 77.36% above today’s ($19.39) stock price. Twitter was the topic of 45 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Credit Agricole initiated shares on December 11 with a “Underperform” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $22 target share price in their report from an October 28. UBS maintained TWTR stock in a recent report from October 28 with a “Buy” rating. Barclays Capital maintained the rating on October 28. Barclays Capital has a “Equal-Weight” rating and a $33 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 28.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio turned negative, as 102 funds sold all their Twitter Inc shares they owned while 129 reduced their positions. 56 funds bought stakes while 191 increased their total positions. Institutions now own 269.03 million shares which is 10.40% less than the previous share count of 300.24 million in 2015Q2.

Institutional Venture Management Xii Llc holds 100% of its total portfolio in Twitter Inc, equating to 418,115 shares. Rizvi Traverse Management Llc owns 2.80 million shares representing 100% of their total US portfolio. Moreover, Ah Equity Partners Iii L.L.C. has 69.57% of their total portfolio invested in the company, equating to 1,202 shares. The California-based Kpcb Dgf Associates Llc has a total of 28.35% of their portfolio invested in the stock. Bain Capital Venture Investors Llc, a Massachusetts-based fund reported 817,155 shares owned.

Twitter, Inc. is a global platform for public self-expression and conversation in real time. The company has a market cap of $13.20 billion. The Firm offers services and products for users, advertisers, developers and platform and data partners. It currently has negative earnings. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users.