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  • Is Twitter A Good Investment?
Technology Articles > Social Networking > Twitter > Is Twitter A Good Investment?

There’s a lot of debate in the investment world right now that involves Twitter. The social media company got off to a bang with shares as high as $74 in December. The stock has recently slumped to $37.24.

The reason for the stock slump is two-fold. On one hand, Twitter’s growth has been slowing. On the other hand, banks are offering investors conflicting advice where investments are concerned. Should you invest?

Twitter’s Growth Problem

People aren’t checking Twitter as often as they once were. New Twitter users are scarce and far-between too. What’s going on? There are some theories surrounding the current growth problem, but I’m going to offer up one of my own. People are getting really tired of social media. The novelty has worn off. Social media sites will always be a part of everyone’s life, but sites like Twitter just don’t have the same importance as they once did. Even Facebook and Instagram are experiencing a growth slump.

Can Twitter do anything to lure people back to the social site? There will be times when social sites are really useful and important (spreading news, letting the world see events happening in real-time, certain business contests), but most people are heading offline now. People that once spent hours on social media sites are fed up. Twitter has done nothing wrong. In fact, Twitter is pretty much a model company.

Twitter, The Company

As a company, Twitter is run very smoothly. Business plans are created and adhered to, the company strives for more growth, revenue is generated, ideas are implemented, and ways that the company can create more users are available. There aren’t any really dirty secrets behind Twitter’s open business doors.

As an investor seeking a solid company to put your money behind, Twitter is a model of how to do business right. However, that doesn’t mean that Twitter is a good investment. If my above prediction is correct, we could see the demise of sites like Twitter in the next five to ten years, so maybe this is simply a short-term investment – but not one that’s likely to generate a quick return at this point.

Some are still behind Twitter too, like Goldman Sachs Group and Deutsche Bank. To these companies, Twitter is a good investment still. To others, Twitter was (and isn’t) a good idea when it comes to making more money. At this point, it’s a gamble, but I don’t see Twitter stock rising anytime soon.

In fact, I’m willing to bet that Twitter stock continues to dive. Unless Twitter can come up with a way to get people interested in the network again, the future of this social network isn’t looking too bright. I’m sure that there are those of you that oppose this view.

Can you offer up any reason why Twitter might actually be a good investment? Can you think of a way that Twitter can generate more users? I’ll stand behind my view that Twitter is on the way out.