Tag Archives: Social Media Landscape

Twitter Stock — a good idea?

Categories: Social Media | Tagged , , | Leave a comment

I love Twitter. I am a tweetaholic if there is such a thing. My new Twitter and social media manager’s name is Arielle. I joke that if your Facebook does well it goes viral, but if your Twitter account grows like crazy it goes Arielle! (Aerial). But, take a look at their stock. Twitter has been losing money, and yet their stock went from $41 to about $60 in the last few months since their stock went public. I’m not saying that you won’t make money with Twitter stock, but it is gambling when you purchase a stock that is losing money with the hopes that it will grow out of control and turn a profit.

I think it is likely that Twitter will continue to grow and perhaps make huge profits. But, social media is very unstable and new with very little track record. The social media landscape changes so quickly, it is hard to predict if the big guys will be able to adapt to market changes. The big question is whether or not Twitter can sell advertising to large companies. They are doing this now, but can they make it profitable in the long run? This is very unclear.

I think Twitter could make it big, but it could get into bad financial trouble too, and your stock has a high chance of becoming worthless as well. Buying stock in social media is a gamble in general. I think that oil companies are much more stable as an investment these days. Low p/e ratios, and very stable business models. Just close your eyes when you ponder what they are doing to the environment.

If I were a bird, I would like Twitter stock, but I’m a human who drives a gas powered cars. I’ll stick to oil stocks for now!

(1) I am a tweetaholic if there is such a thing, but should I buy Twitter stock?
(2) I think Twitter stock could make it big, but could get into financial trouble too.

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