Twitter Stock Alpha and Beta Analysis

TWTR
 Stock
  

USD 53.70  0.21  0.39%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Twitter. It also helps investors analyze the systematic and unsystematic risks associated with investing in Twitter over a specified time horizon. Remember, high Twitter's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, take a look at World Market Map.
  
Please note that although Twitter alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Twitter did 0.51  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Twitter stock's relative risk over its benchmark. Twitter has a beta of 0.15  . Let's try to break down what Twitter's beta means in this case. As returns on the market increase, returns on owning Twitter are expected to decrease at a much lower rate. During the bear market, Twitter is likely to outperform the market.
Twitter Enterprise Value over EBITDA is relatively stable at the moment as compared to the past year. Twitter reported last year Enterprise Value over EBITDA of 180.50. As of 11/30/2022, Price to Book Value is likely to grow to 2.99, while Enterprise Value over EBIT is likely to drop (34.96) .
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

20.22 Billion

Twitter Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Twitter market risk premium is the additional return an investor will receive from holding Twitter long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Twitter. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Twitter's performance over market.
α0.51   β-0.15
90 days against DJI

Twitter Fundamentals Vs Peers

Comparing Twitter's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Twitter's direct or indirect competition across all of the common fundamentals between Twitter and the related equities. This way, we can detect undervalued stocks with similar characteristics as Twitter or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Twitter's fundamental indicators could also be used in its relative valuation, which is a method of valuing Twitter by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Twitter to competition
FundamentalsTwitterPeer Average
Return On Equity(1.64) %(0.31) %
Return On Asset(1.22) %(0.14) %
Profit Margin(2.14) %(1.27) %
Operating Margin(5.38) %(5.51) %
Current Valuation32.39 B16.62 B
Shares Outstanding799.61 M571.82 M
Shares Owned by Insiders16.91 %10.09 %

Twitter Opportunities

Twitter Return and Market Media

The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Sale by Beykpour Kayvon of 14878 shares of Twitter08/05/2022
2
Sale by Ned Segal of 5000 shares of Twitter08/11/2022
3
Sale by Ned Segal of 5000 shares of Twitter08/12/2022
4
Twitter Stock Downgraded As Whistle-Blower Complaint Gives E...08/24/2022
5
TWTR Stock Alert What to Know as Elon Musk Subpoenas the Twi...08/29/2022
6
Midday Movers Twitter, United Airlines, Coupa Software and M...09/07/2022
7
Twitter Shareholders Approve Musks 44 Billion Buyout as Tria...09/13/2022
8
Elon Musk seeks to end SEC muzzle requiring pre-approval of ...09/28/2022
9
Payment of 10741 shares by Caldwell Nick V of Twitter subjec...10/03/2022
10
Twitter stock jumps after report says Elon Musk proposed to ...10/04/2022
11
Sale by Caldwell Nick V of 10921 shares of Twitter10/06/2022
12
Payment of 53 shares by Sarah Personette of Twitter subject ...10/12/2022
13
Twitter stock slumps 10 percent pre-market after Musks layof...10/21/2022

About Twitter Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Twitter or other stocks. Alpha measures the amount that position in Twitter has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2022 (projected)
Long Term Debt to Equity0.290.63
Interest Coverage0.410.38

Twitter Upcoming Company Events

As portrayed in its financial statements, the presentation of Twitter's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Twitter's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Twitter's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Twitter. Please utilize our Beneish M Score to check the likelihood of Twitter's management manipulating its earnings.
Upcoming Quarterly Report8th of February 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End8th of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Twitter

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, take a look at World Market Map. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Tools for Twitter Stock

When running Twitter price analysis, check to measure Twitter's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Twitter is operating at the current time. Most of Twitter's value examination focuses on studying past and present price action to predict the probability of Twitter's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Twitter's price. Additionally, you may evaluate how the addition of Twitter to your portfolios can decrease your overall portfolio volatility.
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