Strong Upward Pre-Market Activity For Twitter (TWTR) - TheStreet

Trade-Ideas LLC identified

Twitter

(

TWTR

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Twitter as such a stock due to the following factors:

  • TWTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $821.5 million.
  • TWTR traded 87,288 shares today in the pre-market hours as of 8:02 AM.
  • TWTR is up 2.9% today from Friday's close.

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More details on TWTR:

Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. Currently there are 10 analysts that rate Twitter a buy, no analysts rate it a sell, and 14 rate it a hold.

The average volume for Twitter has been 23.4 million shares per day over the past 30 days. Twitter has a market cap of $19.7 billion and is part of the technology sector and internet industry. Shares are down 15.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Twitter as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • TWTR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 40.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet Software & Services industry average, but is greater than that of the S&P 500. The net income increased by 5.5% when compared to the same quarter one year prior, going from -$144.64 million to -$136.66 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, TWITTER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TWITTER INC is currently very high, coming in at 81.05%. Regardless of TWTR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TWTR's net profit margin of -27.20% significantly underperformed when compared to the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 9.50 is very high and demonstrates very strong liquidity.

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