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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.

Latest news

Twitter's revenue and market capitalization

24/12/2021 - 09h46

Twitter is one of the social networks with a large number of users worldwide. The group with the blue bird has achieved a strong financial performance in the first three quarters of 2021.

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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General presentation of Twitter

Thorough knowledge of the Twitter group and its activities and main sources of income is essential if you want to analyse its share price on the stock market.

The Twitter group is an American company specializing in the online services sector. More specifically, this company specializes in the development and management of a microblogging tool that allows its users to publish and send free short messages called "tweets" on the Internet by means of instant messaging and SMS.

To better understand the group's activities, they can be divided into several divisions according to the percentage of turnover they generate as so:

  • The sale of advertising space represents 86.5% of the company's turnover.
  • The license sale allows the group to achieve the remaining 13.5% of the group's turnover.

It's also important to know the geographic distribution of the Twitter group's income. This American company only realizes 56.2% of its turnover in the United States. Its second most important market today is that of Japan with 15.5% of its turnover. Finally, the rest of its turnover is generated in the rest of the world, i.e. 28.3%.

Currently, the Twitter group is present in most countries of the world with a few exceptions and as such employs nearly 4,900 people, mainly in the United States, where its headquarters are located.

Analysis of Twitter share price
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The major competitors of Twitter

In order to anticipate Twitter's growth opportunities in its sector of activity, it is of course necessary to know the sector and its main players. This is why we are now proposing to discover the various competitors of this company:

Meta Platforms

This company, formerly known as Facebook Inc, is an American company specialising in social networks and is one of the web giants GAFAM.  The group used to have only the social network Facebook and later acquired the networks Instagram, WhatsApp and Oculus VR.

Alphabet Inc 

This US company is a conglomerate of companies that was once owned by the Google company. In addition to Google's internet services, Alphabet also specialises in social networking and owns the YouTube network and Gmail email, among others.

Tencent Holdings Limited 

This Chinese company was founded in 1998 and specialises in Internet and mobile services and online advertising. Among the services offered by this group are social networks, web portals, online commerce and multiplayer online games. The company owns and operates the instant messaging service Tencent QQ, which is one of the largest web portals in China, as well as the WeChat application.

Snap Inc 

This company, otherwise known as Snapchat Inc, is an American company based in California. Its products include social networking applications such as Snapchat and Bitmoji as well as the camera-equipped Spectacles. The company changed its name to Snap Inc in 2016, when it launched its connected glasses. Its IPO on the Nasdaq is quite recent as it took place in 2017.

ByteDance

Finally, the last serious competitor to Twitter is the ByteDance Group, which is a Chinese company operating in new technologies and which was created in 2012. The company is headquartered in Beijing and uses machine learning-based content distribution platforms. In 2016, it launched a short video sharing platform Douyin, the international version of which was launched in 2017 under the name TikTok. It then acquired TikTok's Chinese competitor Musical.ly as well as news aggregator News Republic in France. Musical.ly and TikTok will then merge in 2018 and retain the TikTok name.

The major partners of Twitter

Thei Twtter Group has also strongly developed its online presence through the creation of targeted partnerships.

Yahoo

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

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

Other partnerships

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

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Positive factors for Twitter shares
The factors in favour of a rise in the Twitter share price:

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.

Negative factors for Twitter shares
The factors in favour of a drop in the Twitter share price:

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.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

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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