Twitter is one of the most popular and influential social media, where both unknown users and officials interact with each other. Twitter Inc. was founded in 2006 and listed publicly in 2013. Over this period, the company has launched such services and products as Twitter, Periscope, Promoted Tweets, Promoted Accounts, and Promoted Trends, which contributed to the increased revenue growth.
Everything might change quickly as soon as Elon Musk, a new sole stockholder, gets private ownership over Twitter stock. What does it mean for investors and how it will impact the Twitter stock price? Experts of DotBig LTD are going to find the answers.
Financial Performance
With more than 400 million monthly active users in 2021, the Twitter platform is one of the most widely used social media. This number is 100 million bigger. This fact has contributed to the growth of the company’s annual revenues – $3.45 billion in 2020 to $3.72 billion in 2021. In the first quarter of 2022, the company reported a 16% growth in revenue.
In 2022, the market capitalization of Twitter is lower than the year before. Today, it’s $27.3 billion. Twitter stock is also traded lower than in May 2021. As of May 25, TWTR stock was traded at $35.75 per share, while a year earlier it was closed at $59 per share.
Throughout the passing year, a notable increase in TWTR stock price happened twice. In June and July 2021, the stock price increased by 16%. Then, after a 50% fall, it started increasing again in March and reached the price of $49.8 by May 2.
In 2023, Twitter shares could reach $54.20. It’s not likely the business will ever be trading publicly at this point – Read More To know more about Twitter 2023 strategies and tips. But, if the acquisition agreement takes longer than anticipated to be completed and 2023 is the year it’s completed.
What were the reasons for these price movements?
Key Events
- On November 29, the co-founder and CEO of the company, Jack Dorsey, resigned from Twitter. After the news was announced, many investors believed it would be better for the company, because Dorsey was also the CEO of another company. So the price started increasing. However, eventually, the Twitter stock dropped by 4% during the following three days.
- November 2021 wasn’t the best time for the Twitter stock, not only because of Jack Dorsey’s resignation. In October, the company published its new report on earnings, which disappointed investors. On the whole, the TWTR stock dropped by 18% in November 2021.
- The most discussed event related to Twitter happened on April 25, when the board of the company announced that they accepted a $44 billion offer from Elon Musk. The richest man in the world reported that he is going to change the company and its social media platform. After the deal goes through, Twitter will become a private company, which means TWTR stock won’t be listed on the exchange anymore.
What does it mean for investors?
According to the agreement, Musk will buy each share of the company for $54.20, which means every stockholder will be paid his share. Twitter stocks are still listed, so if you buy them today at $35.76 for a total price of $3,576, you will receive $5,420 after Musk completes the final transaction.
Trading Conditions with DotBig
You can trade Twitter stock with DotBig until the asset is still traded publicly. DotBig.com is one of the most accessible online brokers for European clients. Except for stocks of international companies, the DotBig company offers currency pairs, cryptocurrencies, CFDs, ETFs, and many other popular assets.
If you want to trade stocks with the DotBig Forex broker, you should know that the company offers very low trading fees for stocks. There are no separate fees, only floating spreads that vary between 0.65-2 pips.
DotBig also offers several professional tools to make trading easier and more efficient, both for beginners and experienced traders. Clients don’t pay commissions for making deposits, and they can use various payment methods for instant withdrawals.
Pros & Cons:
Pros:
The major product of Twitter Inc. is its online social platform. As of today, the company reports growth in daily active users. By increasing traffic, the platform may increase its monthly revenue.
Twitter makes profits not only from traffic and advertising but from data licensing as well.
Twitter API was launched in 2020. The pricing of the service starts at $149 per month.
Bloomberg has started streaming its news channel on Twitter, which attracts users who want to follow the media online. This move might encourage other respectable media to do the same on Twitter, which will increase the traffic of the platform one more time.
You have a chance to get a payout due to the agreement between the company’s board and Elon Musk
Cons:
The number of active daily users is increasing, while the number of monthly active users is going down.
While the revenue of the company might increase, the losses increase as well, which makes the company unprofitable.
Final Thoughts
No one knows what will happen to the company in the following few months. If you expect to get a payout after the acquisition, you must have a plan of what to do with the returns in the future.
As of today, the only activity you should be focused on is following the most relevant news about the corporation and its stocks.
