Author Topic: TWTR - Twitter, Inc.  (Read 34087 times)

DooDiligence

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Re: TWTR - Twitter, Inc.
« Reply #110 on: May 30, 2019, 08:16:29 AM »
I understand that Dorsey is founder/so-founder of each, but how long will this ridiculous situation in which he is CEO of two large tech companies continue?

Bbbbuttt, Elon Musk?




Hmm, I think I should not have said that.  8)

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Schwab711

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Re: TWTR - Twitter, Inc.
« Reply #111 on: May 30, 2019, 09:06:03 AM »
I think TWTR is cheap and severely under-monetized. It still trades at 28x FCF and 23x-25x NTM FCF with 10%+ revenue growth.

Ex-excess cash (leave $500m or so), total capital is roughly $4.5b, implying a ROIC of ~22%. ROIIC has been ~25% in recent years.

By most measures, it's a fantastic business trading at reasonable relative multiples.

The platform/culture is unique amongst internet sites and certainly anything historical. It is the first true public forum that allows anyone to connect with anyone. Folks can have their opinions broadcasted by the POTUS or discuss investing specifics with Jim Chanos on a regular basis. More importantly, the top individuals in nearly every field are active on the platform, which draws in aspiring individuals within those fields and so on.

TWTR is the fastest news wire available to citizens.

I have no idea if, when, or how they will ultimately decide to monetize the platform, but I think it's worth holding some position in TWTR.

On the other hand, as long as Dorsey is CEO the company will probably under monetize and overspend. Right?

I understand that Dorsey is founder/so-founder of each, but how long will this ridiculous situation in which he is CEO of two large tech companies continue?

I wasn't the biggest Dorsey fan for a while but both SQ and TWTR have been run quite well in hindsight. Both have favored innovation (it might be hard to see at TWTR but the improvement in advertising analytics has been huge) over immediate monetization and have now begun to slowly monetize. Maybe I just don't know enough about him to realize he's what everyone says, but it looks like Dorsey is more like Bezos than incompetent. His plans seemed crazy until they proved to be correct and both companies have low GAAP returns but produce a lot of cash.

I think Dorsey is misunderstood/underrated.