Twitter Inc. (NYSE:TWTR)

Price to Earnings (P/E) Ratio

The Price to Earnings (P/E) ratio data is largely incomplete, with missing values in the initial years. Beginning in March 2018, the P/E ratio shows an extremely high value of 1592.79, which dramatically declines over the subsequent quarters to more normalized levels ranging mostly between 13.89 and 24.75 during 2019 and 2020. The ratio spikes again significantly in 2021, reaching 141.83 in March and 167.74 in September, suggesting periods of extreme market valuation or earnings volatility. The fluctuating and often elevated P/E values reflect inconsistent profitability and potentially investor uncertainty during parts of the period analyzed.

Price to Operating Profit (P/OP) Ratio

Price to Operating Profit ratios are available starting from March 2018, exhibiting a similar trend to P/E but with extremely high initial values, such as 633.05 and 149.95 in early 2018. The ratio shows some decline through late 2018 but remains elevated, fluctuating between mid-50s to over 80 in 2019 and 2020. A substantial spike appears in early 2021, notably 2149.42 in March, followed by a sharp decrease to 510.79 and then 139.64 over the next quarters. This volatility indicates significant changes in operating profits relative to stock price, possibly due to operating losses or market sentiment impacting valuation multiples.

Price to Sales (P/S) Ratio

The Price to Sales ratio presents the most continuous data series and reveals a downward trend from early 2018 through early 2019, declining from about 10.04 to lower single digits around 6.9. However, throughout 2019 and 2020, the ratio fluctuates between 6.33 and 9.93, showing no clear consistent trend. Entering 2021, the ratio rises markedly to a peak of 15.42 in March, followed by a decline to 9.13 by the end of 2021 and further to the 5.7 to 7.16 range in early 2022. This indicates varying investor expectations relative to sales, with notable peaks possibly coinciding with periods of market optimism or revenue uncertainties.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio is available for the entire span and generally fluctuates within a moderate range of approximately 2.5 to 4.8 from 2017 to early 2020. The ratio sees a notable increase in 2020, reaching 7.19 in December 2020, followed by sustained elevated values above 5.7 during 2021. There is a decline in early 2022 to below 4.0 before partially rebounding. This pattern suggests changing investor perceptions about the company’s net asset value, with higher valuations possibly reflecting improved growth prospects or intangible asset recognition during the later period.

Overall Insights

The financial ratios indicate significant volatility in valuation multiples over the time period, especially in earnings and operating profit related metrics. The elevated and fluctuating P/E and P/OP ratios suggest periods of low or negative profits contrasted with high market prices, implying investor speculation or variable financial performance. The P/S and P/BV ratios, while more stable, also show variability, particularly with increased valuations around 2020-2021, possibly correlated with broader market events or company-specific milestones. In summary, the company's valuation metrics reflect an unsettled profit environment with investor sentiment swings influencing price multiples across financial measures.

The data reveals notable fluctuations in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio of the company over the period from March 2017 to June 2022. Several patterns and key observations emerge from the analysis of the quarterly financial figures.

Share Price Trends

The share price experienced significant volatility, starting at $18.24 in March 2017 and reaching a peak of $71.79 in December 2020. Following this peak, the price declined sharply to $36.24 by March 2022, with some moderate recovery quarters such as $49.14 in June 2022. The overall trend indicates strong growth centered around late 2020, followed by a marked downturn in 2021 and early 2022.

Earnings per Share (EPS) Performance

EPS figures were initially missing for several early quarters but subsequently show clear variability. EPS turned positive in the June 2018 quarter at $0.02 and generally improved, peaking at $3.05 in September 2019. After this peak, EPS declined, turning negative beginning in March 2020 with values around -$1.56 and continuing negative for most quarters into 2021. A partial recovery occurs by March 2021 with a positive EPS of $0.48, though it remains volatile and falls negative again in subsequent quarters. The oscillation between positive and negative EPS values highlights challenges in sustaining profitability.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio data is sparse but exhibits extreme values indicative of underlying market expectations and earnings performance. For instance, an exceptionally high P/E of 1592.79 at March 2018 suggests very low or negligible earnings driving the ratio upward. Subsequently, the ratio aligned more reasonably during mid-2018 to 2019, with values ranging from 13.89 to 24.75, coinciding with positive EPS and higher share prices. Data for 2020 and beyond is incomplete; however, the unusually high P/E of 141.83 in March 2021 and 167.74 in September 2021 reflects either depressed EPS or elevated share prices, consistent with the erratic EPS trend during this period.

Correlations and Market Implications

There is a notable correlation between EPS and share price movements. Periods of positive EPS generally coincide with rising share prices, such as in 2019 and late 2020. Conversely, negative EPS episodes align with share price declines, particularly post-December 2020. The volatility in earnings appears to influence investor sentiment, as evidenced by fluctuating P/E ratios and share prices. The data also suggests potential operational or market challenges impacting profitability and stock valuation in recent years.

Share Price Trend

The share price exhibits significant volatility over the observed periods. Initially, the price fluctuates moderately between $16.18 and $33.86 during 2017 and 2018. It then peaks notably at $42.31 in mid-2019 before experiencing a decline and subsequent recovery, reaching a pronounced high of $71.79 at the end of 2020. Post that peak, the price decreases sharply to $36.24 by early 2022, followed by smaller fluctuations around the $39-$49 range up to mid-2022.

Operating Profit Per Share (OPPS)

Starting from the first reported positive value in March 2018 at $0.05, the operating profit per share shows a general upward trend through 2018 and 2019, peaking at approximately $0.61 in late 2019. However, a decline begins in early 2020, dipping into negative figures by mid-to-late 2020 with values reaching as low as -$1.37 by mid-2022. Occasional slight recoveries are evident, but the overall trend from 2020 onwards is downward, reflecting deteriorating operating profitability on a per-share basis.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio data, available for selected periods only, shows extremely high values, indicating a relatively expensive share price compared to operating profit. In early 2018, the ratio starts at an excessively high 633.05 and then declines to lower levels around 52 to 87 during 2018 and 2019, suggesting improved alignment between price and operating profit. However, from 2020 onwards, sporadic data points show very high ratios again, including a dramatic spike to 2149.42 in March 2021, reflecting a sharp disconnect likely due to reduced operating profit combined with fluctuating share prices. The absence of continuous data limits a full trend analysis but supports the observation of financial stress during this period.

Summary of Financial Health and Market Perception

The share price trend, combined with the operating profit per share and P/OP ratio, suggests a period of growing optimism until late 2019, followed by challenges starting in 2020. The deterioration in operating profit per share and the elevated P/OP ratios point to operational difficulties impacting profitability, while the volatile share price indicates fluctuating investor sentiment. The company's market valuation appears to have been disconnected from its operating profitability, especially during 2020 and 2021, possibly reflecting external market factors or internal operational challenges.

Share Price Trend

The share price experienced considerable fluctuations over the period. Initially, it ranged between approximately $16 and $33 per share in 2017. There were rises and falls through 2018 and 2019, with a notable peak near $42 at mid-2019. The price then varied significantly, reaching a substantial high of $71.79 by the end of 2020. Following this peak, the price demonstrated volatility and a general declining trend, falling to $36.24 by early 2022 and ending at $39.34 in mid-2022.

Sales Per Share

Sales per share data, available starting from March 2018, show a consistent upward trajectory almost throughout the entire period. The figure rose steadily from $3.25 in early 2018 to a peak of $6.86 by early 2022, with a slight dip to $6.83 in mid-2022. This growth indicates improving sales performance on a per-share basis, reflecting positively on revenue generation capabilities.

Price-to-Sales (P/S) Ratio

The P/S ratio exhibited considerable variability, indicating fluctuating investor perceptions relative to sales. It started around 10 in early 2018, then gradually declined through 2019 to approximately 6.33 by mid-2020. The ratio then increased sharply, reaching a peak of 15.42 at the end of 2020, coinciding with the peak share price. After this peak, the P/S ratio dropped markedly, falling to a low near 5.71 by early 2022 and ending at 5.76 in mid-2022. This trend suggests that, despite increasing sales per share, market valuation relative to sales decreased after 2020, possibly indicating increased caution or reevaluation of growth prospects by investors.

Overall Insights

The analysis reveals a pattern where sales per share steadily increased, but market valuation as reflected by the share price and P/S ratio demonstrated higher volatility. Notably, the peak in share price and P/S ratio at the end of 2020 did not correspond to equivalent jumps in sales per share, implying market sentiment may have driven prices beyond sales growth fundamentals at that time. The subsequent decline in share price and P/S ratio suggests a correction phase. Overall, the data indicate improving sales fundamentals but fluctuating investor confidence over the examined periods.

Share Price Trend

The share price demonstrated considerable volatility across the periods. Starting at $18.24 in March 2017, it experienced a gradual increase, reaching a peak of $42.31 in June 2019. Subsequently, the price declined to $28.07 by March 2020 before surging sharply toward the end of 2020, peaking at $71.79 in December 2020. Following this peak, the price fluctuated significantly, decreasing to $36.24 by March 2022 and ending at $39.34 in June 2022. Overall, the share price showed periods of growth interrupted by steep declines, indicating a volatile investment perception.

Book Value Per Share (BVPS) Trend

The book value per share showed a slow but steady increase from $6.42 in March 2017 to a peak of $11.21 by March 2020. After this peak, BVPS experienced a decline, dropping to $7.73 by March 2022 and remaining almost flat at $7.75 in June 2022. The initial growth suggests accumulation of net assets, while the decline in later periods could indicate asset write-downs or increased liabilities.

Price-to-Book Value Ratio (P/BV) Trend

The P/BV ratio varied considerably, reflecting the disconnect between the market valuation and the book value. It started at 2.84 in March 2017, increased sharply to 4.86 by December 2017, and fluctuated around 3 to 4 range until it reached a peak of 7.19 in December 2020, coinciding with the share price peak. Following that, it exhibited significant volatility, dropping to around 3.97 in March 2022 before increasing again to 5.07 by June 2022. This volatility indicates changing market sentiment, with periods of premium valuation over book value interspersed with corrections.

Overall Insights

The contrasting patterns between share price and book value per share suggest that market perceptions and investor sentiment had a strong impact on valuation. The sharp price movements during late 2020 and subsequent volatility imply sensitivity to external factors affecting investor confidence. The decline in book value per share in 2021-2022 suggests underlying financial challenges or changes in asset composition, which may warrant further examination of financial statements for comprehensive analysis.