Contents
Is Twitter Trading at a Good Price?
In this article, I’m going to cover some basic information about Twitter, Inc., a communications company based in San Francisco, California. Twitter is a microblogging and social networking service. The company also operates the popular Vine short video app and Periscope live streaming service. As of April 2019, Twitter has about a billion monthly active users, which is a significant amount of people. Its stock price has been climbing steadily since its founding in 2006, but is it a good time to buy?
Price
If you’re considering making a Twitter investment, you should know how to evaluate its potential for growth. Using the “Price to Earnings” ratio, you can determine whether Twitter shares are overpriced or underpriced. This may interest you : How Do I Create a Twitter Card For My Website?. A low P/E ratio means a good value, while a high P/E ratio indicates a bad one. PEG ratios also account for growth, which can be important in assessing the future profitability of a company.
The price of Twitter shares is $40 as of writing. Some brokers allow you to buy fractional shares, but not all. If you want to buy fractional shares, you will need to use a broker. It’s best to spread your investment dollars over several companies. If you have more money than time, consider using a stockbroker. They’ll help you find a broker that matches your investing goals. While it’s not necessary to buy Twitter stock in its entirety, you may want to consider spread your investment dollars among several companies.
Earnings
The earnings of Twitter are based on its growth in the social networking and microblogging service. The company has expanded from its core service to other services like Vine, a short video app, and Periscope, a livestreaming service. Twitter has been one of the most popular social networking sites for over seven years. Read also : If Twitter Goes Private What Happens to Shareholders?. Its stock price has grown to over $17 per share. In addition, the company’s earnings have risen significantly since its IPO in February 2011.
However, investors worry that Twitter has much more to deal with than just its latest earnings report. The company has a lot on its plate, including a possible acquisition by Snap. Musk’s recent investment in the company has created a lot of uncertainty for Twitter, so it chose not to hold a post-earnings analyst call. However, it may not be as difficult as it seems. This acquisition has its advantages.
Growth
Is Twitter trading at a good price? Yes, it is, and the reason why is because of its growth potential. Twitter has changed from one of the worst performing stocks in the market to one of the hottest. See the article : Is TweetDeck Owned by Twitter?. Now, the stock has hit a growth rate of nearly 300%, a hefty amount of growth for a company with such a small user base. But the company has plenty of room to grow.
Despite slowing mDAU growth, Twitter has managed to post consistent top-line growth in the past few years. In 2021, Twitter expects to generate $5 billion in revenue, an increase of 36 percent from 2020. Revenue growth over the same period is 6.81% quarter-over-quarter, outpacing mDAU growth of 3%. Clearly, Twitter is aiming high and its current growth rate is not sustainable.
PEG ratio
The PEG ratio of Twitter trading has increased over the past year. Historically, Twitter has operated at a median PEG ratio of 0.06 over the last fiscal year. The ratio peaked in March 2022 at 0.92, and dropped to a five-year low in December 2017 at -5.56. It then climbed in 2018 (+101.0%) and 2019 (+1431.4%). But despite its recent gains, the PEG ratio remains low and remains relatively volatile.
While there are many ways to evaluate a stock, the PEG ratio of Twitter trading is one of the most popular methods. It represents the share’s volatility relative to the market as a whole. While the average beta is one, Twitter’s beta is 0.5947, suggesting that it will have less volatility than the market as a whole. Consequently, if TWTR is performing better than average, then investors should consider purchasing it.
Investing in twitter stock
Investing in Twitter stock is a relatively straightforward process. Investing in Twitter stock requires cash deposits. You can make these deposits via credit card or bank transfer, though some brokers also accept PayPal. You’ll need to be sure that you know how to properly invest in Twitter before you begin buying shares. In addition, you’ll want to review your investment’s performance from time to time. Twitter stock is likely to increase in value as the company continues to grow, so it’s important to understand how to protect yourself.
Once you’ve decided to buy shares in Twitter, you’ll want to find a brokerage that offers trading on the NYSE. The company’s shares currently trade for around $40, so you should find one that allows fractional shares. Alternatively, you can buy shares in different companies and spread your investment dollars out. If you’re planning to hold your Twitter shares for longer, consider attending the annual meeting to learn more about what’s happening with the company.
