Twitter Inc. (NYSE:TWTR)

The financial performance between 2014 and 2022 is characterized by significant volatility in share pricing and a persistent struggle to maintain profitability. For the majority of the observed period, the entity operated with negative earnings per share, which rendered the price-to-earnings ratio inapplicable for most years.

Earnings per Share (EPS) Trends

A gradual improvement in profitability is observed from 2014 through 2018, as losses narrowed from -1.10 US$ to -0.14 US$. The entity achieved positive earnings for two consecutive years, peaking at 1.87 US$ in February 2020. However, this trend reversed sharply in February 2021, with earnings falling back to -1.42 US$, before slightly recovering to -0.28 US$ in February 2022.

Price to Earnings (P/E) Ratio Analysis

The P/E ratio is only present for the years 2019 and 2020, coinciding with the only periods of positive EPS. During this window, the ratio remained relatively stable, moving from 19.57 to 20.69. The absence of P/E values in all other years reflects the lack of positive net income required for this valuation metric.

Share Price Volatility

The share price exhibited extreme fluctuations throughout the period. After an initial decline from 54.83 US$ in 2014 to a low of 16.06 US$ in 2017, a recovery phase began. The price reached a period peak of 71.79 US$ in February 2021, despite a simultaneous return to negative earnings. By February 2022, the share price experienced a significant correction, falling to 36.24 US$.