Twitter Inc. $TWTR - A Valuation On 23rd September 2021

Twitter has had its share of controversies but has established itself as a solid social-media advertising business in the micro-blogging niche.

Summary

Twitter has had its share of controversies but has established itself as a solid social-media advertising business in the micro-blogging niche. They will remain focused here and develop parallel services while expanding into new markets. This growth will require substantial R&D spend and more acquisitions, but the increased scale will help margins expand as they grow. However, margins are unlikely to ever become Facebook-esque because of the difference in feasible size and depth of data.

Market Price = $62.42
Estimated Value = $44.51
Monte-Carlo Price Percentile = 79%
Rating At Current Price = REDUCE

If I had a position, I would reduce it because my valuation suggests evidence of moderate overvaluation.