Investing in Twitter
Although it has strong competition such as Facebook, investing in Twitter can be an excellent opportunity to enter the stock market. However, it is important that before even thinking about buying Twitter shares, we learn more about the company’s activities.
Luckily, you’ve stumbled upon our website and it’s here that we’ll give you all the relevant company information, including facts like how much a Twitter share is worth, pros and cons of buying them, and more! Stick with us and read on below.
What is Twitter?
It is an online platform where users can blog text messages that can be up to 280 characters long. These messages are known as tweets or tweets and can be found on the main page of the account. Each user has the possibility to subscribe to profiles of other people who write their tweets, the latter is called a follower.
It was created in March 2006 in San Francisco, California, and has subsidiaries in Texas and Massachusetts, United States. Twitter has gained worldwide fame thanks to that it has approximately 300 million users. It is estimated that 65 million tweets are published daily and it performs up to 800 thousand searches.
In 2010 Twitter began to offer a marketing service called Promoted Tweets, which consists of advertising to the client who has contracted it. This will be reflected when a user searches for messages on a specific topic. That is to say, the tweet published by the client will be shown in the first results.
There are many reasons that will help you choose this great company to invest your income. The first one is that Twitter has been listed on the NYSE in New York since 2013, which means that it has been on the stock market for quite some time.
Also, you will have the possibility to buy a Twitter share on Nasdaq under the acronym TWTR. Twitter listed its shares on the stock exchange and it didn’t take long to start trading, thanks to the fact that it managed to become successful rather quickly and at the same time create a strong image as a company.
Another reason is the immense amount Twitter owns in shares, which are currently outstanding, almost reaching 800 million. As of 2019, they have earned more than 3 billion US dollars in revenue. All this contributes to the fact that Twitter’s stock value keeps going higher and higher.
Buying Twitter shares: Advantages
- It is very popular with the general public: Regardless of gender or age, more and more people are signing up to the platform, helping to build loyalty to the company.
- Twitter takes advantage of major global events to gain more users: The circulation of information about them make it possible to obtain new audience records.
- The most important investor groups in the United States are betting on the company: Twitter’s stocks are composed of 10.2% by Vanguard, 5.8% by Morgan Stanley, 4.29% by SSgA Funds, 3.19% by ClearBridge, 2.49% by Coatue and 2.41% by BlackRock.
- Twitter’s share price is low compared to its largest competitors: Twitter shares are currently priced at just over $45.
- It has a good capacity to transform its supports: The company always seeks to innovate its services to meet the needs of its users and to be able to face its competitors.
- Provides a great opportunity to invest in a long-term Twitter stock: This is because it has a very good upside capacity and high possibilities to expand the company.
- It has a strong position in the U.S. market in terms of revenue: it has more than 55% of sales in that country alone, which indicates that each Twitter stock has a stable and profitable price.
Buying Twitter shares: Disadvantages
- Its marketing service is not as efficient: According to its customers, the service could be improved in order to surpass that of its competitors.
- Twitter’s stock sometimes has a bit of a risky stock price: Since Twitter went public, the stock price has been quite volatile.
- Strong competition in the area: This company has had a bit of a loss in creating new users, as those others have a more powerful financial and usage model.
In case you don’t know how to buy on Twitter, we will explain below where you can invest without applying much effort to it. To buy a stock you only need to use a stock broker, in the market there are many types. There are some with which you can buy only from a specific country, for example: Renta 4, ING Direct and XTB.
On the other hand, there are brokers that operate from anywhere in the world, such as: eToro, Interactive Brokers, IQ Option, among others. It is worth mentioning that DeGiro broker also works with the international market, but does not operate from Latin America.
Within eToro there are several ways to buy Twitter shares, one of them is Copy Trading. This consists of copying the investment strategy of another buyer, this can be easily done by researching in the search bar. We will now show you how to invest in a Twitter share through the eToro broker:
- First you must create an account by filling out the form on the screen.
- When logging in you have to validate your account by uploading the documents that verify your identity.
- Now in the search bar the name of the company is entered to search for the stock.
- Select the stock, this takes you to a page that shows all the company information and click on invest.
- In the pop-up window you enter the amount to invest, the number of shares to buy and other necessary data.
- Press execute operation.
Tips for investing in Twitter stocks
- In case you are a novice and are afraid of losing a lot of money, you can choose to invest in brokers that operate virtually. This way you just buy and sell Twitter shares as if it were a simulator.
- Design your own investment plan: First of all, it is of utmost importance that you create the strategy to be used, in order to know how much money you can operate with and for how long.