Home / Tech & Systems / Stocks under Profitability Radar: Twitter, Inc. (NYSE:TWTR), SINA Corporation (NASDAQ:SINA)

Stocks under Profitability Radar: Twitter, Inc. (NYSE:TWTR), SINA Corporation (NASDAQ:SINA)

Twitter, Inc. (NYSE:TWTR) dropped over -11.5%  in last session as the odds of a sale appeared to dim additional, shifting attention back to the social-media firm’s troublesome pursuit of a strategy to jump-start user and income growth. The San Francisco firm planned to field offers from suitors last week following Salesforce.com Inc., Walt Disney Co. and Alphabet Inc.’s Google expressed interest or weighed offers, people familiar with the matter have stated.

But Salesforce is re-evaluating its interest in buying Twitter following the software firm’s shares plummeted on news of the potential offer, according to people familiar with the matter. Salesforce could still be interested if the price for Twitter came down, one of the people stated.

For trailing twelve months, TWTR attains gross profit margin of 66.90% and operating margin stands at -12.80%, that are showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as -7.30%; it gives answer about efficiency of different investments in different securities. The returns on assets of firm also presenting perceptible condition of profitability, it has ROA of -6.30%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials, price volatility of stock was 5.19% for a week and 4.13% for a month. The performance of firm for the quarter recorded as -2.98% and for year stands at -43.08%, while the YTD performance was -24.11%. The co attains 1.41 for Average True Range for 14 days. The stock price of TWTR is moving down from its 20 days moving average with -15.60% and isolated negatively from 50 days moving average with -10.25%.

SINA Corporation (NASDAQ:SINA) persists its position slightly strong in context of buying side, while shares price shows upbeat performance surged 4.50% during latest trading session.

Profitability Ratio Analysis; to measure firm’s performance and profitability, we focus on ordinary profitability ratio, SINA has gross profit margin of 63.00% for trailing twelve months and operating margin is calculated as 12.00%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the firm’s ROI concludes as -0.20%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of 2.00%, which signifies how profitable a firm is relative to its total assets.

To make strengthen this views, the active industry firm has Quick Ratio of 1.90, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.33, sometimes its remain same with long term debt to equity ratio. Taking notice on volatility measures, price volatility of stock was 4.01% for a week and 3.16% for a month.


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