Twitter is a social media program that allows people to share their thoughts, opinions, and news in short messages called “tweets”. It connects users with each other and reports and information from around the world. Users can follow other users to see their tweets on their schedule and use hashtags to categorize them and make them easier to find. Twitter can be accessed through its website or mobile app and has become a popular tool for communication, news dissemination, and marketing.
What is Twitter’s, Market Cap?
Twitter’s Market Cap, or Market Capitalization, is an economic term that represents the total value of a company’s outstanding shares of stock. In other words, it measures how much the company is worth according to the stock market. To calculate the Market Cap, multiply the outstanding shares by the current market price per share.
It’s like counting up all the money you would get if you sold the company’s stocks. To find the Twitter stock market cap, multiply the current stock price by the total number of shares sold to investors.
For example, if Twitter has 100 million shares accessible to buy and the stock sells for $50 per share, the Market Cap would be $5 billion (100 million shares x $50 per share = $5 billion).
It’s essential for investors because it helps them understand a company’s size and worth in the stock market.
Factors That Influence Twitter’s, Market Cap
Twitter makes money by contributing advertising services to companies that want to advance their products or services. In fact, advertising makes up about 89% of Twitter’s income. The majority of this advertisement revenue comes from offering promoted ads, Twitter Amplify, Follower Ads, and Twitter Takeover Ads.
Twitter uses an algorithm to customize advertising to suitable users, ensuring advertised products appear in timetables, search results, profile pages, and Tweet discussions of the right people. Advertisers can select their target audience supported by various factors, and Twitter provides tools for marketers to create a following of people interested in their products or services.
Advertisers can also buy publicity at the top of the timeline or a list of popular topics. While Twitter owns and operates its platform, some advertising products are displayed on third-party publishers’ websites, mobile apps, and other products.
Data Licensing is another source of revenue for Twitter, record keeping for around 11% of its total revenue. Simply, Twitter allows other companies to approach its data and trends by paying a fee. This data includes user population and historical trends. The income generated from this segment in 2021 was around $571.8 million, which grew by 12.3% compared to the previous year. Although it is a smaller portion of Twitter’s overall revenue, it still contributes to its growth.
Twitter is introducing a new feature called Twitter Blue, allowing users to pay for verification facilities. For $7.99 per month, Twitter will mark accounts that are considered trustworthy with a blue checkmark. This is a departure from the previous method of only verifying the charges of famous people. This new approach has the potential to generate a new source of revenue for the company if it proves to be successful. The media has been busy discussing this new feature and its potential impact on the platform.
How Twitter Marketed Itself?
How does Twitter advertise? Users post tweets on other social media platforms and news outlets, giving Twitter free advertisement. Twitter also markets to retain users. One effort taught individuals how to use Twitter and distinguish it from other social media sites. “What’s happening in the world?” was their unique platform for news and live discussion. During the World Series, they broadcast an advertisement showing how people could follow their favourite sports, but it was criticized for being too slow and complicated. Twitter markets itself as a news and event platform.
Despite some errors in its marketing campaigns, Twitter’s efforts to differentiate itself from other social media platforms have helped the company to stand out and grow its user base.
Why Is Twitter’s Market Cap So Low?
Even though a company is famous, it will still make a lot of money for its investors. This is the case with Twitter. Even though many people use Twitter, the company isn’t making a profit and doesn’t have a clear plan for how it will start making money. Additionally, Twitter gives away its free product, making it hard for the company to generate revenue.
With a clear path to profitableness or significant growth, Twitter’s stock will likely have a high price. This is why even though Twitter is popular, its stock price remains relatively low compared to other profitable and growing companies.
Twitter Market Cap History
Twitter’s market capitalization, the total Twitter market value, has gone through many highs and lows over the past ten years. In 2013, Twitter’s market cap was at its highest, reaching $36.27 billion. However, in the years that followed, the company’s market cap practised a lot of variation.
In 2014, Twitter’s market cap fell by 36.48%, dropping to $23.04 billion. The following year, in 2015, the company’s market cap decreased even further, by 30.29%, to $16.06 billion.
However, in 2016, Twitter’s market cap rose slightly but fell again by 27.45% to $11.65 billion. In 2017, the company’s market cap saw a significant increase of 53.05%, reaching $17.83 billion.
Over the next few years, Twitter’s market cap continued to increase, with the highest market cap of $43.06 billion being reached in 2020. However, in 2021, the company’s market cap decreased by 19.76% to $34.55 billion.
Twitter’s market cap has undergone many changes over the past ten years, with some years seeing considerable increases while others have experienced significant decreases.