Twitter Inc (NYSE:TWTR) runs a service that wastes the time of celebrities, and journalists, by offering tantalizing glimpses into what often turn out to be nothing burgers. The same can be said for TWTR stock.
For all the rage and angst that analysts pour into shares, they’ve gone nowhere. TWTR is a half-dollar away from where it was a year ago. The company is not growing, and it’s no closer to a profit than it ever was.
The earnings “whisper” for the second quarter, to be announced July 27, is for a loss of 12 cents per share on revenue of $558.8 million. This compares with a loss of 15 cents per share on $601.96 million in revenue for the same quarter a year ago.
Why are investors wasting their time in TWTR stock?
For the same reason journalists are wasting time with Trump’s tweets.
All Sizzle, No Steak
Twitter is what it is — a money-losing micro-blogging site used by celebrities to tease their audiences, and used by audiences to pretend they’re celebrities.
For all the excitement over live streaming, with Twitter now competing with other social sites for news highlights, the company remains stuck in neutral.
InvestorPlace writers are divided on Twitter stock, based on their own buying horizons or trading strategies. Bret Kenwell calls it a buy, but on a pullback. Nicholas Chahine calls it profitable to trade. Luke Lango sees it as doing great, but not for long.
I don’t disagree with any of that.
But that last opinion is the real key for the readers I covet — longer-term investors seeking stocks they can hold for three to five years with reasonable hope of an above-average profit. Reading technical charts for a quick in-and-out gives me a headache.
True, Twitter has proven good at managing expectations. It usually beats earnings estimates and TWTR stock runs a bit after earnings, as the good people at Zacks noted for us recently.
But that’s not a game I like to play.
Going Nowhere Fast
Twitter, the company, is going nowhere fast. The leading Twitterati, like new CEO Ned Segal, are making coin. His 794,000-share signing bonus is reportedly worth $15 million.