Can Twitter still bounce back?

Latest CEO Appointment

The latest leadership shift may signal Twitter ($Twitter(TWTR)$)'s possible change of strategic direction. This could be in a good way, i.e. the new leadership could help meet management's user growth and revenue targets. 

Alternatively, some analysts argues that an internally promoted CEO may fail to bring fresh outside perspectives and "reinvigorate growth". Condequently, do expect volatile short-term share performance.

Financial Performance

Twitter's 3Q21 financial performance was not keeping up with previous quarters' growth and profitability; thus, the share price has fallen -46% from its YTD high.

It has recorded a quarterly loss of US$ -536.76 million due to the US$ 809.5 milion legal settlement costs on the shareholder class action lawsuit.

Quarterly Free Cash Flow (FCF) for 3Q21 also turned NEGATIVE at US$ -22.25 million due to the lawsuit.

Good to HOLD  from a Long Term Perspective

Looking further from a fundamental point of view, Twitter $Twitter(TWTR)$remains a growing, solvent and technologically disruptive company. 

1. Cash rich and holds liquid cash of US$ 7.4 billion in hand; ample cash for organic investments

2. Broadening of its self-serve and performance-advertising offerings will help to enlarge Twitter's advertiser base in a long run

3. Headwinds from changes to Apple's Identifier for Advertisers was not as bad as Twitter expected (better-off than other social-media peers.