Bull Of The Day: Twitter

If the Twitter platform is having to "self-police" to remove harmful users and accounts, and these kinds of numbers are the damage, large growth investors appear good with that.

While the Zacks Consensus profit estimate for 2018 was bumped up to $0.80 from $0.71 primarily due to the big EPS beat, a majority of analysts joined in moving 2019 EPS up 13% from $0.78 to $0.88.

That's earnings growth of just 10.5% over 2018, a phenomenal year when the company really opened the profit valves with over 80% bottom line growth. 

But with revenues expected to advance nearly 15% to $3.43 billion next year, the funnel at the top is still offering plenty of opportunities for monetization.

To follow and stay in sync with the growth at Twitter, all you need to do is keep your eyes on the accelerations and decelerations in EPS estimates. And one of the handiest ways to do that is with the Zacks Price & Consensus chart.

What you see below: on the left-hand scale are lines plotting the changes in annual earnings estimates against the stock price on the right-hand scale. The size of the green arrows indicates the magnitude of the earnings beat...

Find Your People, Share Your Passions

As the estimates stabilize at new higher level between 80 and 90 cents, we will find growth investors willing to pay 30+ times for the advertising power of a social media platform with strong user affinity across many cultural and professional circles -- finance, politics, sports, health, science, technology, big data/AI, entrepreneurship, education, entertainment, travel, fitness, cooking, spirituality, publishing, celebrities and so on.

Did you even imagine there were so many different social groups using Twitter? Neither did I until about two years ago when I began exploring the platform more and finding its value for such diverse interests.

While Twitter can be subject to some of the same political abuses as Facebook (FB - Free Report), these sophisticated and knowledge-focused groups tend to have more "self-regulation" from within. 

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Disclosure: Kevin Cook is a Senior Stock Strategist for Zacks Investment Research and he may be starting a long position in Twitter ( more

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