Twitter (TWTR) - A Report Brought to You by Q8 Trade
Twitter stocks at a glance
Twitter is a social networking site for the exchange of public messages through the Internet. Twitter provides a platform for transferring ideas and experiences between people and documenting them in real time with the global audience, by writing text consisting of 140 characters or less, or by pictures and video, as well as It is used by companies to display their services and products, based in San Francisco, California.
Twitter was able to create a distinctive sign for itself in the word “Tweet” in addition to the image of the songbird in blue color, and the original logo of the company was the word Twitter in Latin letters. , Where the logo was modified to the image of a singing blue bird, and it was changed later in 2012, then the third logo in the company’s history was used to keep the same blue bird without writing.
In 2006, Twitter was founded by Evan Williams, Noah Glass, Jack Dorsey, and Bess Stone, to use it as a way to send messages about social status via SMS.
In 2007, the full version of Twitter appeared in the South through the Southwest Music Conference that was held in Austin, Texas.
In 2008, Twitter released its version in Japanese and was not satisfied in the English language, due to the increase in the number of users from Japan.
In 2009, the number of Twitter users increased to 1,300 percent.
In 2010, Twitter revealed “promoted tweets,” meaning ads that will appear in search results, which are a major source of the company’s revenue.
In 2012, the number of Twitter users increased to exceed 100 million, publishing approximately 340 million tweets per day, and the company announced a long-term partnership with the famous search engine development company Yandex, and in the same year the company opened a new office in Detroit , in order to work with other brands and advertising agencies.
In 2013, Twitter became one of the list of the 10 most visited sites in the world, the company announced its control of a small company working on developing video sites on the internet, and thanks to this company, Twitter users became able to publish and circulate videos, and in the same year was included Twitter shares its first public offering on the New York Stock Exchange (NYSE) under the symbol (TWTR).
In 2014, Twitter users became more than 271 million active users, sending more than 500 million tweets per day, and the company announced a new partnership for IBM , as this partnership aims to help other companies use Twitter data.
In 2016, Twitter users numbered more than 319 million active users per month, and the Twitter company’s management was able to develop artificial intelligence technology, after spending nearly $ 150 million on this topic.
What you should know about Twitter
Twitter offered its shares for public subscription for the first time in the month of November 2013, on the New York Stock Exchange, offering 70 million shares. The share price at that time was $ 26 per share, bringing the company’s value to $ 18.3 billion.
One day after the company offered its shares, the share price reached $ 45.10 and rose to $ 50.09 before closing at $ 44.90 per share.
In 2013, the share price reached over $ 70, and despite the high growth in Twitter users, it later declined.
In 2014 the company made modest profits, and revenue increased 124 percent in the second quarter of the year.
In 2016, the stock hit its lowest level, which was less than $ 15 at the beginning, and this level of the share lasted for a long time.
In 2017, the stock regained its status and increased its price to $ 45 at the beginning of the third quarter of 2018.
Many times the company is identified as a micro-blogging site, or it is called a social media portal.
85 percent of the company’s revenue is generated from advertisements on its own website.
How is Twitter’s share price determined?
In order to calculate the Twitter share price, you need to monitor the market well, especially company earnings reports, and try to keep up with political and economic news that can have a direct impact on the share price as the share price setting is affected by some factors.
What factors affect the share price of Twitter?
Supply and demand
One of the most important factors that affect the share price, as buying and selling shares in an open market is by using the bid and ask system, if the number of buyers per share is more than the sellers, in this case the price of the demand increases and this leads to a rise in the share price, and vice versa if the number Buyers are less than the number of sellers, so the share price falls.
The financial performance of the company
Supply and demand and high share prices are affected by the financial performance of the main company. In the event that shares gain a lot of money, they are more valuable to investors, it is companies that have high rates of demand for their shares that always announce good gains in economic cycles, both good and bad.
Wide economic trends
Equity prices are affected by the macroeconomics of countries. Most companies pass through a difficult situation if there is an economic recession, then companies are affected and low growth rates appear in the case of economic problems that make it difficult to earn money easily. In the case of increased demand, this leads to an increase in the share price.
In the event that speculation increases in the market or stocks, the share price is affected and witnesses great fluctuations. In the case of speculation at a low level, fluctuations in the share price are less.
Government policies and relations with other countries influence the stock price.
Is trading in Twitter shares profitable?
Investing in Twitter is not just buying shares that can be traded after a certain period, but investing in Twitter is considered investing in one of the list of the 10 most visited sites in the world, the number of its users is increasing exponentially.
By referring to the company’s revenues in some years, we find that in 2010 the company achieved 45 million dollars, and in 2011 Twitter announced its desire to facilitate advertising services for companies, which was the reason for achieving an estimated profit of 139.5 million dollars.
At the beginning of 2014, the company achieved $ 250 billion because of its distinguished activity in the advertising market.
At the beginning of 2018, the company had 336 active users worldwide, an increase of 9 million users over 2017.
With the company’s profits continuing and the rise in advertising revenue and the number of Twitter users, its shares became attractive to trade.
How are Twitter shares purchased?
There are a set of steps that are followed for the purchase process:
- How much you invest in Twitter shares: You must determine the size of your investment in Twitter shares, and you should never invest in an amount more than you wish to lose.
- Opening an account: Go to the account opening page, and fill out the specified form.
- Buy shares using the trading platform: After completing the account opening process, you can trade Twitter shares using the CFD system using one of the multiple trading platforms.
Twitter stock trading via CFDs
Trading in contracts for difference is trading in price movements of specific financial instruments, whether it is up or down, as trading in contracts for difference allows you to profit through the movement of stocks and financial instruments without owning the original.
Contracts for difference are contracts that are negotiable between the person who is trading and the middleman, trading is by exchanging the difference in the financial value at the beginning of the contract for the stock, and its value at the date of the end of this contract, without buying and actually owning the main financial assets.
CFDs are financial derivatives through which a trader can benefit from the movement of the price of financial instruments up or down without actually possessing them.
Trading CFDs on shares gives you access to the stock market, by trading the shares of a number of the largest companies such as Twitter, and trading against movements in the price of the company’s shares, without having real ownership of the shares of the asset you are trading in, and these are considered one of the most important advantages Trading CFDs, the trader is protected and has nothing to do with any events that might befall the company such as bankruptcy or closure.
How contracts for difference work
- A trader chooses an asset, whether it is a stock, currency, or index, which the broker is offering these assets for trading as CFDs.
The trader opens a position and determines the state of the sale or purchase, the amount he is investing in, leverage … and other tools and standards that differ according to the broker.
- Actually concluding a contract between the trader and the broker and agree to the opening price of the deal, and see if there are additional fees or not.
- The deal opens and is not closed except by the decision of the trader to close it, or if the trader identifies cases in which the deal is automatically closed, such as a loss order or taking profits, or if the contract period ends.
- In the event that the deal is closed on a profit, the broker pays the trader, while in the event the deal is closed on a loss, the broker charges the trader a fee.
Example in the case of a stock purchase:
The trader bought 10 CFDs on Twitter shares and $ 0.07 was approved as a dividend per share, if the trader left his position open before the due date, the dividend dividends will be deducted from his account which will be equal to $ 0.70 if we notice that There are 10 open contracts.
Example in the case of selling the share:
The trader sold 10 CFDs on Twitter shares and $ 0.07 was approved as a dividend per share, in the event that the trader left his position open before the due date, the dividend distributions will be added to his account, which will equal $ 0.70 if We noticed 10 open contracts.
Advantages of trading contracts for difference
Leverage: While trading CFDs you do not need a large capital, as by using a small amount you can open large-sized deals compared to owning the underlying asset, due to the leverage that characterizes CFD trading.
The possibility of profit from decline: whether the market movements are moving up or down, you can benefit, since there are no restrictions at the beginning of the buying or selling process, the person is trading and investing in the price difference, so you can make profits from the rise or fall of the share price, whatever You should anticipate the path of the market before trading.
The ability to hedge: It means that in the event that if you are in a losing transaction, you can at the same time open a new transaction opposite to it, to be able to achieve gains, this will make your losses significantly less.
Trading a wide range of markets: Most CFD brokers provide the ability to trade on various assets in a wide sector of financial markets all over the world through direct trading platforms on the internet, for this diversity in investment tools (stocks, indices, currency and commodities) CFDs provide a huge sector for many investment opportunities for all traders.
No stamp duty: In the case of buying or selling in contracts for differences, this does not require any taxes that are paid such as documentation or stamp fees, and the reason for this is that the trader does not have the actual assets of what he is trading in, and despite this, the gains that It gets taxed from that circulation, but it happens on condition that it reaches a minimum that is determined by state law.
The possibility of trading throughout the day: CFD trading is available 24 hours, five days a week, starting from Monday to Friday, and this makes the investor free to trade at any time he wants, whether the trader is full-time or a worker, and this is unlike traditional markets, A trader through CFDs can also continue trading even if the main markets are closed.
Why should you trade in Twitter shares with Q8Trade?
- Q8Trade provides leverage to increase the value of the capital you are trading with.
- This broker provides you with the opportunity to trade Twitter shares through contracts for difference as this guarantees obtaining gains even if there is a decrease in prices.
- It provides the possibility of trading Twitter shares without any fees or stamps, through contracts for difference due to the reason that you do not actually own the stock.
- Variety tools that can give you the advantage in trading Twitter stocks including real-time market prices, historical charts, updated news related to Twitter which can be a reason to affect its performance, fees, live charts, basic technical analyzes and more.