Analysis of Twitter share price

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Over recent years we have seen a number of companies emerge of which the activity is uniquely based upon the use of the internet as a means of communication and exchange. This was particularly the case with the Facebook Company as well as one of its indirect competitors, Twitter, of which the shares are also quoted on the stock markets. Here is some useful data you will need to enable the completion of an analysis of the Twitter share price and thereby trade it online.  

Elements that can influence the price of this asset:

Analysis N°1

As you know, the biggest social networks are fiercely competing to attract and gain the loyalty of their users. In order to be able to compete, Twitter will have to double its resourcefulness. It is sensible that investors adopt a global approach to this line of business by taking the competition into account. Keep close watch on the market development of every big name in blogging and information sharing, but also on outsiders which could have a high impact in the years to come.

Analysis N°2

Obviously, Twitter’s future also depends on its capability to generate revenue thanks to its social network service.

Analysis N°3

It goes without saying that the announcement effects relating to the establishing of new features on this social network will become important in the months and years to come. It is for this reason that we recommend that you closely monitor all of this company’s publications and news, more specifically technical novelties as well as their innovation projects.

Analysis N°4

In the same way, you should examine any eventual partnerships between Twitter and other companies in the same line of business or a complementary one. In order to offer more services and monetise them, it’s not impossible that Twitter would resort to other entities’ know-how and popularity. Again, properly monitoring the company’s news will provide you with the necessary information.

Analysis N°5

Finally, it goes without saying that you must closely monitor all of the company’s publication of results, but you must also compare them with analysts’ consensus and forecasts. Investors attach great importance to this data and they shouldn’t be taken lightly due to their almost immediate effect on this stock.

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About the Twitter Company:

Launched in 2006 in the United States, the Twitter Company offers a micro-blogging service through the publishing of small messages online that are then shared by internet users. Benefitting from the social media trend that is enjoying high popularity particularly with the younger generation, Twitter is now developing its activity through diversification, notably with services for business and advertising.

Its activity is of course international and covers just about every country throughout the world.


The major competitors of Twitter:

The Twitter group exercises its activity in the Internet social networks sector. It therefore faces severe competition from various rivals that you should be aware of to better understand the position of this asset on the stock markets. Here therefore are details of the major competitors of this micro-blogging network together with their particularities or common points as compared to Twitter.

From a general point of view, the major serious competitor to Twitter is Facebook which is currently the leader of social networks in terms of user numbers.

There also exist other direct and indirect competitors to Twitter such as the following:

Finally, a new competitor may prove to make waves in the near future. It is the Mastodon Company, launched in 2016, which experienced a huge surge in subscribers from 30,000 to over 500,000 in the space of less than three weeks in 2017.


The major partners of Twitter:

The Twitter Group has also strongly developed its online presence through the creation of targeted partnerships.

We should particularly note the partnership signed with Yahoo in Japan in 2015. This search engine therefore publishes sponsored tweets on its network similar to Flipboard which has also become a Twitter partner.

Snapchat could also be considered as a favoured partner of Twitter as this application is directly linked to this micro-blogging network.

Finally, Twitter has also developed several partnerships with live streaming companies throughout the world.


Analysis of the Twitter share price:

Although since its launch the Twitter Company has generated no turnover due to the gratuitous nature of its services, and even without a business model, it has still managed to raise major investment funds through a number of public offerings issued since 2009.

The introduction of its shares onto the stock market in 2013 was one of the major IPO events of the sector since FaceBook and the price of its shares hasn’t ceased to increase since then with continued positive forecasts for the coming years according to the analysts.


Important stock market data about Twitter shares:

If you plan to implement an effective strategy for trading in Twitter shares in real time then you will of course need to know the information given earlier as well as some basic data such as the following:

By cross-checking all the data we have told you about here, you will be able to set up a complete analysis of the Twitter share price online thanks to a good technical analysis but also to the anticipation of the effects of certain fundamental events. major likely to occur in the future.


Financial and economical history of the Twitter Company:

Understanding how the Twitter Company has evolved since its creation until today, particularly on the financial plane, has better enabled the forecast of its share price movements and will assist in the forecast of its future movements. Here therefore is some useful information for you:

An initial public offering was offered in 2007 to several American business angels. This enabled Twitter to raise between 5.4 and 15 million dollars. A third offering led the company to raise another 35 million dollars in 2009.

Twitter was valued at 500 million U.S. dollars in 2008 then at one billion dollars in 2009. At the end of August that same year Twitter was valued at between 5 to 10 billion dollars on its potential and a new public offering contributed to a further one billion dollars.

In 2010 Twitter raised a further 200 million dollars, which raised its value to 3.7 billion U.S. dollars. This went on to pass the 7 billion dollar mark in 2011.

Of course, these evaluations are based on the potential of the Twitter Company as the group’s business model is not yet fully developed and investors cannot speculate on the true profitability of the proposed services, notably that of advertising.

In 2013 Twitter issued its IPO introducing it onto the stock markets which was considered the most important event in this sector of activity since that of Facebook in 2012. The group thereby revealed its financial data to the public eye to gain the maximum of funds. We therefore know that its turnover tripled in 2012 attaining U.S. $316.9 million with a net loss of U.S. $79.4 million. It went on to achieve U.S. $253.6 million in 2013.

With this data you can better understand how the Twitter Group will probably see their profits continue to grow over the following years which will undoubtedly positively influence its share price on the stock markets.


What are the advantages and strengths of Twitter shares as an asset?

In order to invest on Twitter stock in a sensible way, you must first establish your position regarding which way you’re going to trade. In order to do this, you will of course need to know the company’s true strengths as well as its weaknesses. First of all, we invite you to discover the advantages of Twitter stock as an asset.

One of the main advantages of the Twitter company is without a doubt its position within the very exclusive line of business of social networks. As a matter of act, even if it’s still far from the Facebook giant, the micro-blogging service has made its place amongst the largest companies in this activity sector. Twitter benefits from a great popularity amongst the general public and in particular amongst the younger generation who are attracted and register at an increasingly early age, which facilitates the building of company loyalty.

It should also be noted that Twitter often benefits from breaking news in order to gain users. It was certainly the case all throughout the most recent American elections such as the 2017 presidential election which allowed the company to achieve new audience records. The systematic use of the sharing network by celebrities around the world, whether it be in the context of politics or other fields is a real advantage for companies who wish to take advantage of their reputation to strengthen their own.

Another one of the company’s strengths is its ability to diversify its types of distribution as well as its product offering in order to better cater to the evolving needs of its users, thus allowing it to better deal with its fierce competition. Thanks to the implementation of video sharing on its platform, Twitter has been able to respond to one of the most important issues that it has encountered over the last few years.


What are the disadvantages and weaknesses of Twitter shares as an asset?

Let’s now focus on the weaknesses of the company and the reasons which have made investors cautious when trading this asset, because the disadvantages are numerous. Here are the main ones:

Of course, the first weakness of the Twitter company remains its competition, in particular other social networks such as Facebook and Snapchat which attract more users thanks to their more playful nature.

It should also be noted that Twitter’s number of monthly active users has shown a slight decrease during the last few months and years and remains below analyst’s projections, which could mean that the platform is beginning to run out of steam and to lose its usefulness in favour of its competitors.

The consequence of this loss in users has of course become apparent when looking at the company’s results which report a decline in its sales revenues as well as increasingly important net losses. Unfortunately, the company’s implementation of live broadcasts hasn’t been enough to remedy the situation, in particular ever since the micro-blogging service has lost the broadcasting contract it used to have with the NFL which has now gone to Amazon.

Furthermore, revenues generated by publicity have also recently indicated a sharp decline, especially since the company struggles to attract professional advertisers. This brings us to yet another one of Twitter’s weaknesses, a strategic one this time since the company struggles to develop an efficient marketing model which would allow advertisers to target their prospects and measure their performance.

Frequently Asked Questions

When did the Twitter stock first hit the stock market?

The Twitter group will go public on October 31, 2013 on the NYSE New York Stock Exchange. The IPO price is set at $26 per share. The first quotation of this stock will thus be at 45.10 dollars. The share will then peak at $73.31 in December 2013 and will then begin to fall back to $31.85 at the end of the lock-up, i.e. at the end of the period during which a shareholder cannot dispose of the shares purchased, i.e. in May 2014.

Is it possible to invest online on the Twitter shares?

Of course, and given the strong popularity of the Twitter share with investors around the world, more and more online trading platforms in the market are offering this value, so you can trade through CFDs even from Europe. All you need is a trading account to do so.

What type of analysis should be carried out for the Twitter shares?

In order to anticipate future changes in the Twitter share price in the best possible way, you should of course make use of different types of analysis. These include fundamental analysis based on company and industry news and data, and technical analysis using historical stock market charts.

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