Limits inspire creativity. No modern company has embodied this concept as well as social networking giant Twitter. It brought micro-blogging to the masses and changed the speed at which information spread throughout the world. Anybody could write their 140-character thoughts and publish within seconds. Twitter become home to the mundane and the profound. It made entertainment headlines and influenced revolutions. The company has also proven to be a profitable venture with hundreds of millions in revenue. When it launched its IPO, it attracted massive interest which continues to this day. Make your Twitter binary options trading thrive by learning more about the company.
A Brief History
Twitter was founded in the first quarter of 2006 by friends Noah Glass, Biz Stone, Evan Williams and Jack Dorsey. It launched in the third quarter of the same year and quickly attracted a large following that has snowballed into 271 million active users as of mid-2014. Together they generate nearly a billion tweets per day on every conceivable topic. The company now employs over 3,000 software engineers, graphic designers, marketing specialists and more. Businesses use the social networking service to reach their customers and receive instant feedback. Governments and organizations use it to disseminate important information.
The Twitter IPO
The success of the platform has encouraged the top executives to get Twitter listed on the stock market. They filled the papers to the SEC in September 2013 and had their first trading day on November 7. There was overwhelming clamor for the 70 million shares which were priced at $26 at the opening. They closed at $44.90 per share which meant that Twitter had a value of roughly $31 billion. The price has fluctuated much over the year going as high as $74.73 and as low as $29.51. Market capitalization stands at around US$30 billion.
Most of Twitter’s revenues come from advertising. Since 2010, the site has allowed companies to purchase ad space in the form of promoted tweets and promoted accounts. Those familiar with Google AdWords will note similarities between the two services. Both display relevant ads based on search results and other parameters. This was first provided to invited clients only but Twitter has since opened up the self-service advertising platform to the public. The feedback has largely been positive and revenues have continued to grow steadily, although it is still operating at a loss.
Trading Twitter binary options is an exciting endeavor as the company is right at the heart of popular culture. It is on the news headlines nearly every day thanks to celebrities and other controversial users. Outages and security concerns can send stocks tumbling due to eroded confidence. On the other hand, innovations, acquisitions and partnerships can help the price rise again. A thorough study of the history of this young tech company should prove quite rewarding for the earnest trader.