Are you interested in purchasing Twitter stock but don’t know where to start? Well, you’re in luck as we have written a comprehensive guide to help you every step of the way.
Today’s guide will give you insight into why investing in Twitter stock is a brilliant move. Plus, we will also provide you with some tips on how you can add Twitter stocks to your investment portfolio. Before we give you all of the juicy details, let’s start with a brief overview of the company.
A brief overview of Twitter
Twitter is a leading social media platform that has built a solid reputation since kicking off operations many years ago. As a renowned social media giant, Twitter allows users to send and receive short messages called “tweets.” These tweets could be anything from images to texts to links to videos and more. What’s special about Twitter is that posts are limited to 280 characters.
The company kicked off operations in 2006 and has become a force to reckon with. Today, Twitter is a go-to platform for individuals and businesses to share opinions, information, and content with millions of users scattered across the globe.
Besides being a leading social media platform, Twitter is also a publicly traded company. What this means is that its stock is listed on the New York stock exchange, making it possible for investors to buy and trade the company’s stock.
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Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Twitter generates the bulk of its revenue through its advertising model. Thanks to its flourishing advertising model, the company is able to generate massive revenue by displaying advertiser ads to users of the platform.
Besides its advertising model, the company has launched new revenue streams including the sale of data licenses, hardware products, and Twitter blue subscriptions.
When did Twitter go public?
Twitter launched its IPO on November 7, 2013, a couple of years after it kicked off its operations. During its initial public offering, Twitter shares were priced at $26 per share. Following its successful IPO, Twitter shares began trading on the New York Stock exchange with the ticker symbol “TWTR.” Today, almost anyone can buy and trade Twitter shares, thanks to being listed on dozens of brokerages.
Through its initial public offering, Twitter was able to raise $1.8 billion, making it one of the most successful technology IPOs of the time. Like every publicly traded company, Twitter’s stock has experienced swift moves in different directions, making it possible for investors to make money.
Some of the factors impacting Twitter’s stock price include industry trends, the company’s financial standing, and of course, investor sentiment.
How has Twitter stock performed in 2022
Since Twitter went public in 2013, its stock has experienced a range of upward and downward trends. In the years after its successful listing on the New York Stock Exchange, Twitter’s stock experienced strong growth, rallying to as high as $70 per share.
While the 2013 rally attracted a lot of investment in the company, in 2016, Twitter stocks suffered a significant decline, which saw its shares trading for around $14 per share. While its shares have gained some lost ground since then, it is yet to attain the highs seen in 2013.
It’s also important to add that Twitter shares have experienced some rollercoaster moments in 2022, especially following Elon Musk’s declaring interest in buying the company. It would be recalled that Twitter stocks skyrocketed after Elon Musk finally agreed to buy the company for $44 billion dollars.
Despite a series of court cases that saw the prices of Twitter shares plummet, it’s exciting to see Twitter shares soar again. After taking over the reins at Twitter, Elon Musk has made a series of significant changes aimed at increasing revenue. For instance, he introduced the Twitter blue subscription, where Twitter users can now pay to have their accounts verified. The move will see Twitter remarkably increase its revenue, a win-win move for investors who put faith in the company.
As of the time of putting together this post, Twitter’s stock was trading for $53.35 across different brokerages.
How much would a $1000 investment in Twitter’s IPO return?
Twitter had its initial public offering on November 7, 2013, making it possible for investors to put their money into the company. During its IPO, one Twitter share was priced at $26. What this means is that if you invested $1000 during Twitter’s IPO, you’d have gotten around 36.46 shares of the company.
It’s listing on the New York stock exchange saw its price rally significantly. As of September, Twitter’s stock was trading for $45 per share. This simply means that if you held on to your share from the IPO and never sold, your $1000 investment would have been worth around $1730, which isn’t a bad return on investment.
Let’s assume you didn’t sell in 2021 and are still holding till now, your 36.46 Twitter shares would be currently worth $1,945.141.
Is it a good time to buy Twitter shares?
Even though Twitter has gone through some rollercoaster experiences for much of 2022, especially with the drama and court cases that ensued, following Elon Musk’s interest to buy the company, it appears that the dust is settling, after the takeover was completed a few months ago.
Even though there hasn’t been any significant uptick in Twitter’s stock price, with Elon Musk promising to revamp the company with new sweeping features, it’s only a matter of time before Twitter’s stock continues on its upward trajectory.
One of Twitter’s latest moves aimed at boosting revenue is its recently launched blue feature, where ordinary users can now apply for their account to be verified. The move will see Twitter earn millions in monthly revenue.
Let us also quickly add that the stock market is pretty unpredictable. Plus past performance doesn’t guarantee future results. So before putting your money into Twitter stocks, keep in mind that investing in the stock markets comes with some risks. To this end, you want to do your due diligence, consider your investment goals, and your personal financial situation before making any investment decisions.
If you have any doubts, you can always talk to a financial advisor for guidance.
Things you should do before investing in Twitter shares
As we mentioned right from the get-go, Twitter shares have continued to appreciate, making investors a ton of many. But while the company’s shares continue to show a lot of promise, we always encourage investors to do their due diligence before investing in any shares. So before putting your hard-earned money in Twitter stocks, here are some things you should do:
Do your research
We understand the craze to want to own shares in companies like Twitter. That said, what you know about the company from a consumer standpoint is quite different from what you know as an investor. What we simply mean here is that you shouldn’t base your decision to buy Twitter shares based on current pricing or past performance.
Instead, we encourage investors to focus on scrutinizing Twitter’s merits as an investment. This will entail scrutinizing the company’s net income and earnings, management, revenue, and more.
Besides that, you should also consider whether buying Twitter stocks is great for your portfolio. Of course, your answer will depend on your current financial situation, investment goals, and current holdings.
Decide whether investing in Twitter stock is a good decision
You can find Twitter’s current share price by searching for Twitter’s trading ticker, TWTR on an online broker, or a financial information website.
Before you decide to buy some Twitter shares, here are some things we would love you to consider:
How will you achieve diversification: Investing in individual stocks is risky because they lack diversification. Assuming a company you invest in suffers a rough patch, your portfolio will take a hit. To be on the safe side, we always recommend investing in low-risk mutual funds like index funds. This makes it easy for you to diversify your portfolio and lower your investment risks.
What are your future investment goals: It’s always great to invest on a regular basis. The name for such an investment strategy is dollar-cost averaging. This strategy entails investing specific amounts at standard intervals. So instead of investing all your money at once into Twitter shares, we suggest you take the dollar cost averaging approach. This will ensure you don’t pay exorbitant prices for stocks and shares.
Decide how much you’d like to invest in Twitter
One of the most important things to consider before buying Twitter stocks is how much money you’d like to invest. The answer isn’t necessarily the same as how much money you have available. The reason for this is that the stock market is seen as a long-term investment and experts always discourage individuals from buying stocks with money they would typically need in the next couple of years.
Before investing in any individual stocks, it’s always wise to have an adequate emergency fund. More so, ensure that you’re saving for important short-term goals.
If you’re pretty new to the stock market and have a small amount to play with, we strongly recommend investing in fractional shares. By investing in fractional shares, you’ll be able to purchase a piece of share, based on a specific amount you’d like to invest.
Let’s assume you have $100, and you’d like to invest in Twitter shares. By leveraging the fractional shares approach, you can invest as little as $10 at a time. While not all online brokers support fractional shares, you can explore fractional shares with brokers like eToro.
Open a brokerage account
Before you can start buying Twitter stocks/shares, you’ll need to have a brokerage account. Thankfully, the process is super easy, especially with many of the top online brokers like eToro, Admiral Markets, AvaTrade, Plus500, Fidelity and more making it easy for users to sign up for an account.
Signing up for an account on an online broker like eToro takes less than 15 minutes. The process is pretty similar to opening a savings or checking account. If you have the money to buy a single share or more of Twitter, you’ll be surprised at the options available to you. That said, look out for brokers with low or no commissions, useful tools for research, and excellent customer service.
Also, if you’re hell-bent on investing in Twitter stocks but don’t have the money for a full share, you can sign up for brokers like eToro who offer fractional shares. This option lets you buy a portion of one share of Twitter.
Buy Twitter stocks
Now to the part you have been eagerly waiting for: how to buy Twitter stocks. Once you have setup up a brokerage account and made up your mind on how much you’d like to invest, it’s time to add some Twitter stocks to your portfolio.
Keep in mind that the price of a stock is determined by its bid-ask spread. For those just learning about the bid-ask spread, it essentially means the difference between the price buyers are willing to pay and the price sellers are willing to accept. And just so you know, the bid-ask spread isn’t static as it changes throughout each trading day. That said, it’s important not to get caught up in your quest to get the lowest price to the penny.
When buying Twitter stock, you’d have to do so via your preferred broker or trading platform. You’d typically be requested to choose an order type. This will determine when and how your Twitter stock order will be executed.
While most online brokers have a variety of order types, you’ll be okay with these two order options: a market order and a limit order.
- A market order executes your trade in real time. This is a good option for buy-and-hold investors. Keep in mind that what you pay may slightly differ from the price you saw when executing the order. And the reason is that a market order prioritizes time. So your trades will typically be executed quickly, based on the best available price.
- A limit order is a brilliant option for investors who are more worried about price than speed. With a limit order, your trade will only be executed if the stock price reaches the level you set. Limit orders are great for wild market swings. Unfortunately, there are chances that your order may not be executed, so you might end up missing a good opportunity.
How to buy Twitter stocks on eToro
Thanks to the rise of online brokers like eToro, it’s now easier than ever before to invest in top companies like Twitter and Google. If you have been thinking about buying some Twitter stocks, you’ll be happy to learn that eToro makes the process seamless and hassle-free.
eToro kicked off operation in 2007 and has become a force to reckon with in the online brokerage space. The platform currently boasts over 10 million active users. eToro is licensed to operate in Cyprus, the United Kingdom, and Australia.
While eToro provides a reliable platform for buying and selling stocks, they also allow users to invest in other financial instruments. Here is how anyone can buy Twitter stock on eToro:
Create an eToro account
New customers looking to buy Twitter shares on eToro have to create a new account, which is simple and only takes a couple of minutes. Existing customers only have to log into their accounts.
When signing up for an eToro account, you’ll typically only have to provide basic information like name, email address, and phone number. That said, if you want to deposit money and start trading, you’ll have to provide additional information. This is needed to verify your identity.
Complete your eToro profile
This step is only for people opening an account on eToro for the first time. So if you already have an eToro account, you can skip this process.
For new users, you’ll need to complete your eToro profile before you can start trading. This information is needed so eToro can comply with AML and CTF regulations. And yes, this process only takes a couple of minutes, so it won’t waste your time.
Fund your trading account
After you must have completed all the relevant verification, the next thing to do is fund your trading account.
The current minimum deposit for eToro is $200 or it’s equivalent in other supported currencies. eToro currently supports over seven deposit methods, making it easy for users to fund their trading accounts.
Some of the popular deposit options on eToro include credit or debit cards, wire transfers, UnionPay, Skrill, Paypal, Neteller, and WebMoney.
As with most investments, only invest money you’re comfortable losing
Tip: If you’re not fully convinced or you don’t feel ready to invest real money, you can test the waters with eToro’s virtual portfolio feature. This option lets you trade your favorite stocks without putting in real money. And as you gain experience and feel more comfortable, you can switch to a real portfolio.
Buy TWTR stock
With your account now funded, you can start trading stocks on eToro. While you can buy a stock on eToro, you also have the option to short it. All these depend on your sentiment on market direction. That said, here is how you can buy Twitter stock (TWTR) on eToro.
Head over to the unique search bar located at the top of the eToro interface. Enter the name of the ticker associated with the stocks you want to buy in this case, TWTR. Besides providing you with the price chart, you’ll also be able to see important information about Twitter stock, including income statements, balance sheets, and more. eToro takes things up a notch by providing some research for your preferred stocks.
Finally, click the “Trade” button to place your order for TWTR stock. You should see a new window pop up where you will be able to tweak all the parameters for your trade.
That wasn’t so hard, was it?
