CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

Twitter is nearly ten years old

The social media giant is approaching its tenth birthday, and despite a surge in popularity initially, its share price has been performing poorly since floating.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

The first ever tweet – Jack Dorsey’s ‘just setting up my twttr’ – was sent ten years ago this month. As the anniversary nears, we’re taking a look at how the business has grown since its IPO in November 2013, and what the future looks like for the social media giant.

By the time of its IPO, Twitter had over 204 million users. The explosion in the number of monthly active users (MAU) in such a short time period drew parallels with the rise of another social media success story: Facebook.

An IT glitch at the NASDAQ caused a delay in the trading of Facebook’s shares on the day it listed, and for that reason Twitter decided to list on the traditional NYSE rather than the tech-focused exchange.

Twitter’s flotation was a roaring success, the IPO price which was available to institutions was $26, and the share price jumped over 73% from there on the first day of trading. The company’s top brass like Evan William, Jack Dorsey and Dick Costolo became paper billionaires on the day of the listing.

Recent trouble
MAU is a crucial measure of success for social media companies. Twitter’s enormous jump in users from its creation to flotation is certainly impressive, but since listing, the growth rate has been less impressive. Between the first-quarter of 2013 and the fourth-quarter of 2015, the firm added just over 100 million MAU’s and in percentage terms that is nearly 50%.

The last quarter of 2015 showed a small decline in MAUs and that was not received well by investors, especially when you consider that Facebook has in excess of 1.5 billion MAUs.

Being able to monetise your client base is essential for social media companies, and the majority of Twitter’s revenue comes from advertising but the growth of MAUs needs to be strong too.

Since listing, Twitter’s quarterly revenue has increased by 184% while Facebook’s has jumped 314%. Weaker MAU and revenue growth is why Twitter is trailing Facebook in terms of share price performance. Since listing Twitter’s stock has dropped 55% while Facebook has risen 161%. 

Company Buy ratings Hold ratings Sell ratings Average target price Current share price
Twitter 15 24 3 $20.74 $18.54
Facebook 48 4 1 $134.77 $109.82


Equity analysts are clearly less bullish on Twitter than they are on Facebook. The current percentage of buy, hold and sell ratings for Twitter is 35.7%, 57.2% and 7.1% respectively and that compares with breakdown in March 2015 of 44.7%, 52.7% and 2.6%. Investment banks have lowered their target for Twitter to $20.74 from $53.30 in March 2015.

Will Twitter overcome its troubles and hit another major milestone? 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.