Twitter has been around for more than a decade. It was released in July 2006, and after six years it has over 100 million users. They were posting around 340 million tweets a day. Let’s admit it, who doesn’t know the twitter blue-bird symbol? Also, who didn’t pop the question at least once in a lifetime: is it wise to invest in Twitter?
It would not have been possible to tweet the above paragraph on the famous already-declared social network. This is because it has a 150-characters restriction, which got it the nickname the SMS of the Internet. The company that owns the platform had its ups and downs throughout time – including on the stock market. At this point, the option to invest in Twitter could be either intelligent or risky. But let’s take a closer look at the data that might lead us to an answer on Twitter.
General Information about Twitter
Twitter appeared after a daylong brainstorming session, which involved the board members of podcasting firm Odeo. At first, it was hard to determine whether Twitter was a social network or a microblogging platform. Twitter grew quickly and had marked the birth of hashtags, as a form of communication. The users’ feeds developed and offered more and more features, so it was just a matter of time until celebrities began to use them to communicate with their fans.
In December 2011, after the latest significant investment, the company was valued at $8.4 billion. Also, a recent significant rise in the history of Twitter was during the American election day. Consequently, after it passed the company found itself in front of a 10% decline. Since then, its owners continue to invest in Twitter and its features. They even sent a public letter to shareholders in April 2017, to keep them updated. The first name of the platform, which changed before its release, was Twttr. NYSE investors know it as TWTR.
Is Twitter Publicly Traded?
Twitter was first traded on NYSE on November 7, 2013. At the time, shares opened at $26 and closed at $44.90.
That day offered the company a valuation of around $31 billion.
Twitter Stock Price Estimate
A share of Twitter Inc is today around $18.23. The estimation says that it is due to have a slight growth to $18.25. However, its performance in recent times seems to have minor changes. All of them place Twitter Inc below the $20.00 limit.
This is information that has raised many questions in the mind of investors. It almost seems that the California-based company is planning its way up and waiting for it to happen.
How to Invest in Twitter?
- It’s easy to invest in Twitter. All you need to do it buy shares at the New York Stock Exchange. You would probably find them at the exact above price or somewhere close.
- Before doing so, you need to know that TWTR had a drop at the end of 2015 – January 2016. The last year meant prices of $15 - $20 for the company.
- However, the 2017 first quarter reports of Twitter Inc. were impressive. The company then fell with 15% after the announcement.
- On the company’s side, Twitter embraced live streaming and added 9 million monthly active users in the first three months of 2017. The investments that the board announced seem to take shape.
Answering the Debate: Should You Invest in Twitter?
It may seem risky to invest in Twitter, at first glance. Changes in stock prices are small, yet significant. However, it also looks like the company is working through a continuous development. Below are the reasons which should or shouldn’t lead you to invest in Twitter.
- The board of Twitter Inc is now focusing on deep learning techniques, such as notification engineering. This is the method to increase user engagement and attract the ones that are not active anymore. This is already visible since the user engagement has increased with 11% since the last three months of 2016.
- In the first months of 2017, Twitter had an average of 319 million users. The summer of 2016 represented 317 million monthly active users on the platform. This stagnancy is safe, especially if you choose to benefit from Twitter’s magic moments: the main political events.
- The Twitter platform is also focusing on protecting its users by cleaning up harassment and turning the content into a friendlier one with fresh ad formats. It is a matter of time until the ad revenue per year will grow and monetization takes shape.
- However, at this point, it seems that the only significant changes in the prices of TWTR stocks appear due to speculation. If throughout 2016 the prices didn’t go above $20, they suddenly reached a high of $25 in October. This happened due to rumors of a buyout.
- Technically, if you invest in Twitter, you have small chances to feel a profit. In the third quarter of 2016, Twitter had an 8% revenue growth. In the same year, the company’s cost of income also had an increase of 12%. Again, we are discussing stagnancy.
- It’s not Facebook, and advertisers know this. The advertising ice has not been broken completely on Twitter yet.
Where Can I Buy Twitter Stock?
You can buy TWTR stock and invest in Twitter about any time now. You just need to log into your broker and issue a trade order. You can use the buy or call options if you want to initiate a position on Twitter.
Based on the above, you should not expect significant losses anytime soon. However, substantial growth is also out of the question, now. However, this social media trend is a matter of options and instinct. So, if you enjoy the exposure and the company’s letter to shareholders, you may take the chance and invest in Twitter.
Wrapping Up
It could be wise or just safe to invest in Twitter. It is hard to determine where the company stands on the social media roller coaster, especially looking at historical price changes. However, what Twitter can promise now is safety. Twitter may not be the number one social media. But many place it in the long-term top 10, and this can be an advantage. After all, investment means choices.
Did you invest in Twitter? Have you noticed changes worth mentioning? We are looking forward to reading your tips and experience in the comments section below.
Images from depositphotos.com.
