Buy Signal on Twitter (TWTR-US)
Twitter is a $31.8 bn market cap and a famous social network, that specializes in the development and management of a microblogging tool allowing its users to post and send free short messages (called tweets) on the Internet, via instant messaging and SMS. Net sales break down in two main segments : sales of advertising space (87% of sales) and sales of licenses (13%).Sales derived from United States (56%), Japan (16%) and others (28%).
The company generates cash-flows and is expected to grow again in 2021 (revenue of $4bn), but heavily depending on advertising. Twitter is a Mid cap company with a lot of cash (over $5bn) in its balance sheet, allowing plenty of flexibility to improve its growth potential. One of the main point is that user growth soared during the Covid crisis that should translate into growth potential later on.
Short term catalyst: Growth rate, cash-flow generation .
This signal looks consistent with the strong momentum on the US Technology segment.