An analysis of Twitter

1. Twitter, Inc.
(TWTR)
Catherine Yu
Feb. 5 2018

2. Introduction
• Founded in 2006 San Francisco : Global platform for public self -
expression and conversation in real time.
• Twitter
• Periscope, app  broadcast and watch video live with others.
• Advertising:
o Promoted products and services  promoted tweets; promoted
accounts; and promoted trends;
o Public APIs  Developers to contribute their content to its
platform.
• Data Licensing  Subscription access to its public data feed for
data partners.

3. SWOT
• Strengths
• Loyal users. There are people and entire companies whose popularity and
market value seems to be directly tied to their level of influence on Twitter.
• Established brand and people recognize it.
• Easy to promote content and age in touch content and get in touch with fans
• Weakness
• The net loss although is reducing but remain negative.
• Ad revenue continues to fall.
• The turbulent situation of its management
• Opportunity
• New trend of live streaming brings more opportunity for advertising.
• Threats
• Fierce competition – We struggle to see TWTR’s differentiation when competing
for ad budgets against larger and faster growing social players like
FB/Instagram/Snap to improve these trends

4. Competitors
Facebook (including Instagram & WhatsApp)
Alphabet (Google including YouTube)
Snap
Vkontakte / VK  Russia
Sonico  Latin America
Weibo Corp. ADR  China

5. Financials
- Overall in Q3 2017  Look to further increase
- Net loss decrease
- Revenue calculation  MAU & Revenue per user.
- User growth at 5%-7% YoY%
- Revenue per user decrease in US by -2% YoY in
the long run; increase internationally 1% YoY
- EBIT  FCF

7. • Hypergrowth growth period: 5 years
• $25.92  $27.8 7.25% Increase
• Hypergrowth growth period: 10 years
• $25.92  $24.6 5.09% Decrease
• Strong Buy Recommendation

8. Thanks!