Twitter Stock Forecast: $TWTR Stock Forecast 2022 is revised LOWER to $48.6.
Twitter Stock Forecast: Why did the stock decline?
In the past one week twtr has declined by 11.67%. This could be the consequence of Elon Musk’s tweet ‘twitter is freed’. The company will be delisted with the price of $54.20 per share. The company is going to be reversed back to a private company. Under Elon Musk’s direction, there were two new major changes.
- 8$ subscription feature for micro bloggers – A source of revenue that infuriated the public. The company has asked for 8$ a month to provide service to already a free facility i.e right to freedom of speech. In response to public dismay, Elon musk tweeted that you can still tweet for free but without the blue tick verification feature. French minister Olivier Veran said ‘decertify my account but won’t pay for twitter blue tick’
- Massive layout and rehiring within days –Elon Musk fired about 50 % of the company’s workforce by sending a mail and locking them out of their laptops. The company also got sued for firing 3700 employees all at once. Musk also ststed that ‘everyone exited was offered 3 months of severance, which is 50% more than legally required. Elon said he had no option but to fire the company’s employees to cut the $4 m loss that it incurs every day.
Twitter Stock Forecast: 2021 Review
Twitter had a volatile year in 2021 with prices ranging from $542.07 in December to $77.63 in March. The year started at $54.15 and ended and $43.22
|December 31st, 2020||$54.15|
|December 3rd, 2021||$42.07|
|March 1st, 2021||$77.63|
|December 31st, 2021||$43.22|
Twitter Stock Forecast: Price Target 2022
|Average Price Target 2022||20th July||$48.6|
|Wells Fargo & Company||July||$54.2|
Twitter Stock Forecast: Fundamental Analysis of Twitter Stock
The fundamentals of the company look very strong, especially for the first quarter of 2022-23. The company reported earnings of $ 0.90 per share against the estimate of only $0.05 per share. It was the surprise of 1595.23%. The revenue came at $1.20 billion in the first quarter, which dropped from $1.57 billion in the previous quarter, but despite that company reported a net income of $513.29 million due to an increase in the profit margin to 42.74% from the previous quarter’s margin of only 11.59%.
However, the major drawback for Twitter is its P/E ratio which is more than 160 at present. Investors are finding it hard with the high P/E ratio stocks and are moving towards “less expensive stocks” in high uncertain and volatile market. The next quarter fiscal results are due on 22nd July 2022 and the consensus estimate for the earnings is $0.15 per share.
Twitter Stock Forecast: The Effect of Elon Musk Deal on the Stock Price
It is true that Elon Musk has made a mess of the deal with the twitter. While some investors do buy his idea of making the platform more transparent, but a clear communication is the base of major deals. His fickle behavior has harmed both Tesla and Twitter stock price.
While Twitter Inc has accused Musk of various things after calling off the deal, but it cannot be doubted that Musk tweets has put downward pressure on the stock. Moreover, it has
created unnecessary noise within employees of Twitter Inc who remains unclear about their immediate future.
The announcement of deal bought the share price higher, but it has done more damage rather than good to the stock price. A clear decision in the immediate future will help to decide the future course of action for the stock price.
Twitter Stock Forecast: What’s in Store in 2022
Twitter stock is down by about 46% in last one year. One of the main reason is the overall sell off in the market. The premium stocks like Netflix, Alphabet, Meta all have shared their share of downfall, Twitter is no different. Add to it, the volatility induced by Elon Musk and the Twitter stock is seen making big moves, at least one percent each day. Traders who were confident of Elon Musk deal went long and are now finding it difficult to digest the mercurial behavior of the billionaire.
But, keeping the news buzz aside, the company is performing well on the financial front and recent results took everyone by surprise. Technically, the chart shows bearish signals and stock is down and out in last one year, but company fundamentals has been strong. Technical indicators work best in stable market, but for twitter stock price is driven by headlines and in such scenario, technical indicators do not find relevance.
The due date for the court proceedings is in September and till then, the volatility will remain in twitter stock. In 2022, the stock is expected to make another one or two big moves depending on the results of the court proceedings and further development in the case. If Musk is forced to pay twitter as per deal, the stock can touch new heights, or vice versa.
Should an investor consider twitter for the portfolio? the answer depends on one’s risk appetite. However, even an aggressive investor should wait at least till the outcome of the pending court case and let the sanity return to the market.
Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.