With over 368 million daily active users, Twitter is a globally renowned social media platform that has achieved significant influence. In 2022, billionaire entrepreneur Elon Musk, founder of Tesla Inc. and SpaceX, acquired the platform for $44 billion, spurring sweeping changes impacting its stock price and performance. For those considering purchasing Twitter stock, this article provides valuable insights.
What Happened to Twitter?
In 2022, billionaire Elon Musk’s company X Corp. acquired Twitter for $44 billion. Musk’s vision was to transform the social media company into an “everything app” that could offer banking, shopping and entertainment. In July 2023, Twitter rebranded itself as X, coinciding with the launch of X.com, a website that Musk founded in 1999 as an online bank. Users, investors and analysts had mixed reactions because of concerns over Musk’s influence and control over the platform.
But the impact of the rebrand on Twitter's valuation is less transparent because it is now a private company. Twitter stock has been delisted from the New York Stock Exchange, and you cannot buy it in public markets. It may be available in secondary markets.
How to Buy Twitter (TWTR) Stock
Twitter shares are no longer traded on a public exchange like the New York Stock Exchange or Nasdaq Stock Market, and its financial performance and health are not open to the public. But you can still find ways to buy and sell Twitter stock as a private investor if you are willing to do some research.
Conduct Research on Twitter as a Company
Even though Twitter is not required to file financial reports, you can still find information about its revenue, user growth, market share and competitive position from sources such as news articles, industry reports and analyst estimates. Examine market trends and competitors in the social media industry by looking at market share, user base, engagement and growth of Facebook, YouTube and Instagram. Also consider the opinions and ratings of analysts and investors who closely follow Twitter. These factors can help you assess Twitter’s potential value and growth prospects as a private company.
Choose a Reliable Stockbroker or Trading Platform
Because Twitter is a private company, you cannot buy its stock through a regular online broker or trading app. You must find a specialized platform or broker that deals in pre-initial public offering (IPO) or private stock, such as EquityZen, Forge Global or EquityBee. These platforms connect buyers and sellers of private stock and facilitate the transactions. They also charge fees and may require minimum investment amounts that vary depending on the platform and the deal.
Follow the Rules and Regulations of Buying Private Stock
Buying private stock is not as simple as buying public stock. Investors may need to meet certain eligibility criteria, such as being an accredited investor — having a net worth of at least $1 million or an annual income of at least $200,000 — or having a relationship with the company or its employees. You also need to sign a contract specifying the terms and conditions of the deal, such as the price, quantity, lock-up period and stock transfer restrictions.
Be Prepared for the Risks and Uncertainties of Buying Private Stock
Private investment can be risky and speculative, with no guarantees of success. It may be difficult or impossible to sell your stock if there is little demand or liquidity in the market. You may lose money if the company doesn’t perform well or goes bankrupt. It’s also important to note that you may not have voting rights or the ability to influence the company’s decisions.
Twitter Stock History
Twitter launched in 2006 as a microblogging platform to share short messages, called tweets, of up to 140 characters (later increased to 280). The platform quickly gained popularity among celebrities, politicians and everyday people who use it to share their opinions, news, jokes, memes and other content.
After going public in 2013 at $26 per share, Twitter’s stock price soared to $45 per share. But the platform soon faced challenges such as slowing user growth, declining revenue growth, increasing competition, regulatory scrutiny, security breaches and management issues. In February 2016, the stock reached its lowest point of $14 per share, losing more than 80% of its value from its peak.
Twitter has since recovered from its slump by expanding its content offerings to include live video streaming, enhancing its user experience by introducing new features, redesigning its interface and improving its algorithms.
In October 2022, Elon Musk acquired Twitter for $44 billion and took the company private.
Historical performance of Twitter (TWTR) over the last year
How Do Elon Musk’s Twitter Changes Affect the Stock?
Musk’s acquisition of Twitter has garnered mixed reactions from investors, analysts and users. Some believe that Musk’s bold and innovative vision has the potential to revitalize the platform and unlock its full potential while others are skeptical of his idiosyncrasies, which could jeopardize the platform’s reputation and stability.
Despite the mixed reactions, X has seen increased user growth, engagement, revenue and profitability under Musk’s leadership. Some investors and analysts have speculated that X could benefit from Musk’s other ventures, such as Tesla, SpaceX, Neuralink Corp. and Starlink through cross-promotion, collaboration or integration.
Some are concerned that Twitter could face more legal, regulatory, ethical and social challenges and backlash because of Musk’s changes. Whether Twitter can sustain its growth and performance in the long run remains to be seen.
Pros of Buying Twitter Stock
- Growth potential: Twitter boasts a vast and devoted user base that spans various demographics, geographies, interests and niches. Its real-time nature, brevity, virality and influence set it apart from other social media platforms. Twitter can expand its revenue streams with advertising, subscriptions, tipping, e-commerce and new products and services.
- Innovation: Twitter is constantly enhancing its platform with new features and functionalities. Recent additions include Spaces (audio chat rooms), Fleets (disappearing stories) and Super Follows (paid subscriptions). The company has also experimented with new technologies like artificial intelligence, blockchain and virtual reality. Twitter has partnered with other innovative companies like Square (payment service) and Spotify (music streaming service) to enhance its service further.
- Leadership: As the founder and CEO of Tesla, SpaceX, Neuralink and Starlink, Musk is renowned for his entrepreneurial and innovative spirit. Musk has made a name for himself by transforming numerous industries, including automotive, aerospace, energy, transportation and communication. Musk’s Twitter followers are known to be extremely loyal and supportive of his endeavors, and his presence on the platform has undoubtedly made it more dynamic.
Cons of Buying Twitter Stock
- Volatility: Twitter’s stock is highly volatile and subject to significant fluctuations in both directions. Market sentiment, earnings reports, news events, analyst ratings, competitor actions, user behavior and more influence it. Musk’s unpredictable and controversial statements and actions also impact the stock.
- Competition: Twitter faces fierce competition from other social media platforms such as Facebook, Google, Snapchat and TikTok. Some of these competitors boast larger user bases, diverse revenue streams and engaged users that threaten Twitter’s market share.
- Regulation: Twitter faces increasing regulation worldwide, which could limit its operations, growth and profitability. These regulations include data privacy, content moderation, antitrust, tax, national security and human rights laws. Such regulations impose costs, penalties, restrictions and liabilities that could affect Twitter's operations, growth or profitability.
Investing in Twitter Has Gone Private
Twitter’s stock landscape has changed significantly since Musk’s acquisition. He turned it into a private entity with potential for innovation and uncertainty. While Musk’s leadership and vision are promising, potential investors should be aware of the unique challenges and risks associated with buying private stock. Conduct thorough research, choose the right platform and adhere to regulations when considering an investment in the future of Twitter, now rebranded as X. The future of this social media giant-turned-everything app is still a subject of intrigue and speculation in the ever-evolving tech industry.
Frequently Asked Questions
Can I still buy Twitter stock?
Yes and no. You can buy stock in the company X, formerly known as Twitter, however Twitter no longer exists.
Is Twitter stock a good buy?
Whether Twitter (X) stock is a good investment depends on your risk appetite, time horizon and financial situation. If you seek a long-term investment with growth potential, innovation and leadership, X stock may be worth considering, but beware of its volatility, competition, regulation and backlash.
How much are Twitter shares?
Twitter shares are no longer available for public trading and pricing depends on how much private owners are willing to trade them at.
About Anna Yen
Anna Yen, CFA is an investment writer with over two decades of professional finance and writing experience in roles within JPMorgan and UBS derivatives, asset management, crypto, and Family Money Map. She specializes in writing about investment topics ranging from traditional asset classes and derivatives to alternatives like cryptocurrency and real estate. Her work has been published on sites like Quicken and the crypto exchange Bybit.