Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Twitter

(

TWTR

) as a pre-market mover with heavy volume 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 $593.3 million.
  • TWTR traded 2.4 million shares today in the pre-market hours as of 8:23 AM, representing 13.4% of its average daily volume.

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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 12 analysts that rate Twitter a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Twitter has been 22.4 million shares per day over the past 30 days. Twitter has a market cap of $23.2 billion and is part of the technology sector and internet industry. Shares are down 3.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Twitter as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet Software & Services industry average. The net income has decreased by 22.7% when compared to the same quarter one year ago, dropping from -$132.36 million to -$162.44 million.
  • In its most recent trading session, TWTR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • TWITTER INC's earnings per share declined by 8.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TWITTER INC continued to lose money by earning -$0.96 versus -$1.05 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.96).
  • Despite currently having a low debt-to-equity ratio of 0.43, 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 10.08 is very high and demonstrates very strong liquidity.
  • 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.

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