Tuesday, November 12, 2013
As twitter becomes more and more prevalent, it has grown to support a large following and has pages for companies, celebrities, people, and a lot more. Twitter is used by businesses for advertising to promote products and according to some of the articles has not yet reached its full potential. Twitter is a great way for people to connect easily and see things quickly as it emerges into the more "modern" social networking outlet. The stock itself has already fared better than Facebook's and seems to be a lot more popular. Twitter shares are forecasted to improve in price but is that really the case? How will we know when the company peaks or what will happen if another site takes its place as it is seeming to do with Facebook. Competition will be a large factor in determining where the company goes into the future.
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I've actually hear some fairly pessimistic analyses of Twitter's stock. Many think that it is actually more overvalued than Facebook. It's just that the one was mishandled in a way that the latter was not. Things may change for Twitter. Ultimately, so much of these stock valuations are based on expectations of future earnings. I'm old enough to remember the dot-com bubble. Stocks for companies that were losing money with silly business models were trading at inflated prices, only to end in disappointment. Twitter seems more of an open question than Facebook.
ReplyDeleteI agree that Twitter should fear the competition. In 6 months Twitter could be out of the limelight and a new social media site could have taken it's place. Obviously this would have tremendously poor affect on the stock, and it can't be discounted. Instagram and Twitter did the same thing as Twitter and if Twitter's user-base is not dedicated then there could be trouble ahead.
ReplyDeleteTwitter is a great way for connecting and networking. Part of the niche that twitter has is its simplicity but this can also be limiting.It will be interesting to see what twitter is able to come up with new to keep people interested.
ReplyDeleteTwitter is uniquely simple and accessible, and I don't see its unparalleled success declining anytime soon. Only time will tell if its IPO was a good call, but I think investors will not be disappointed (for some time at least).
ReplyDeleteI think that it is good that Twitter is launching their IPO fairly sooner than Facebook did, and I think this could help them in the beginning. I think the other issue will be stockholders having confidence in Twitter and its future. I agree with you that a new social media app could pop up in the future, but for now I think Twitter will continue to do fine as a popular app and on the stock exchange.
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