What’s Going On With Twitter Stocks?
When Twitter began, many were skeptical about its longevity. Who wants to be limited to 140 characters?! Well, a lot of people apparently. The social media platform has grown exponentially, becoming one of the most valuable sites online – and rumor has it, it’s up for sale.
When the rumors of a potential acquisition leaked in September, Twitter stock (TWTR) shot through the roof. Specialists were speculating that the stock could continue to increase in price as prospective buyers bid up the price. In fact, some were saying we could see Twitter stock record gains of 75%, 100%, or even 150%. This is increasingly shocking because the share price was trading 68% below its initial public offering (IPO) price just a few months ago.
What Goes Up, Must Come Down
News that potential buyers, who have expressed interest in buying the blue bird in the past, are no longer jonesing for the opportunity to shell out the cash is having a catastrophic impact on the TWTR stock. Early last month, the social network’s shares dropped 17% in pre-market trading with concerns that some expected suitors are no longer interested.
Not great for Twitter or its current stockholders.
So, What Now?
Twitter is in trouble. An acquisition of the company was viewed by many as a necessary rescue for the social media platform, which has struggled to make money off its massive user base.
Thankfully, the company has made some promising moves, of late that may be it’s saving grace moving forward. In October, they made a deal that Thursday night NFL games would be streamed live on the service in addition to the live streaming it’s already hosted of the presidential debates.
The live video could save Twitter – but it’s too early to tell. While the site has always been the go-to place online for live commentary, adding video could keep users active on the service, which in turn, should help Twitter sell more advertising.
So, Should I Buy?
We aren’t stockbrokers. But we can tell you it’s a very interesting time for Twitter. These new streaming services will either help them get back on top and attract advertisers or it will simply slow their descent. We suggest you keep an eye out and watch the stock and make your own assumptions and decisions from there.
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