Twitter shares fall on continued investor scrutiny

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Twitter ($NYSE:TWTR) shares fell almost 3% Monday as investors and Wall Street analysts continued to assess the social-media giant’s position in the wake of its recent quarterly results and ongoing battle with potential acquirer, Elon Musk. On Friday, Twitter reported second-quarter results that included a loss of 8 cents a share, excluding one-time items, on $1.1B in revenue. Analysts had earlier forecast Twitter to 14 cents a share on revenue of $1.34B. The drop in share price indicates that investors are concerned about Twitter’s ability to compete against other social media platforms and turn a profit. The company is also facing scrutiny from regulators over its dealings with Musk. It is unclear how this will affect Twitter in the long term, but it is likely that the company will continue to face challenges in the months and years ahead.

Market Reaction

Twitter shares fell on Monday as investors continued to scrutinize the social media company.

VI Analysis

Twitter’s fundamentals reflect its long-term potential, and the company’s intrinsic value is around $58.8, according to the VI Line.

However, the stock is currently trading at $39.2, which represents a 33% discount.

Summary

This marks a continued trend of investors being increasingly skeptical of the company, which has been under pressure to improve its user growth and profitability. While Twitter has taken some steps to address these concerns, such as introducing a new algorithm to surface more relevant content, it has yet to sufficiently assuage investors’ doubts.