Who knew that 140 characters could perhaps be worth $1.5 billion dollars? Twitter Inc. is a social media company that is anticipated to go public, and according to Robert Peck, a SunTrust Robinson Humphrey analyst who was first to rate the stock, twitter stocks could potentially reach $50 a share in the span of a year. Twitter allows users to post about potentially anything, including promotions, thoughts, and views on public issues, with a limit of 140 characters.
“It is important for investors to look at Twitter beyond just a 140 character text.” ~Robert Peck
Investors could consider twitter as a highly anticipated stock that will offer many returns in the future. When used effectively, twitter can expose messages that could reach thousands of viewers by the second. Such was the case for billionaire Carl Icahn, who tweeted about buying Apple stocks, which then prompted Apple’s market capitalization to increase by $17 billion, within an hour of his posts.
Tweets can be used as promotion:
Twitter’s future seems to be a very bright one, and as companies continue to utilize twitter’s services to promote their own causes, twitter’s worth is bound to keep growing. Companies can use twitter as a key channel in their business models as it is a brilliant way to raise awareness for their products and services to a wide audience, through advertising, e-commerce, and mobile applications (which are continually becoming an effective form of advertising as three quarters of twitter’s consumers are mobile users). Twitter may even be able to follow suit with Facebook’s successes, including its recent rise as the world’s number one social network valued at $106 billion, and maybe even surpass it. In today’s social media centered society, tweets are bound to turn into gold.
Sources:
http://business.financialpost.com/2013/10/07/twitter-gets-buy-rating-before-ipo/?__lsa=e605-748c
http://www.reuters.com/article/2013/09/12/us-facebook-shares-idUSBRE98A17W20130912