Are you looking for the best binary options brokers where to trade Twitter stock? We compare all the brokers in order to make it easy for you to find the best binary options site for trading Twitter. Find here Twitter's key facts, why trade Twitter stock, a comparison of all the binary options brokers, possible trading signals and factors influencing Twitter stock price.
Twitter Stock Binary Options Trading
Twitter is one of the world’s most popular social media platforms with 302 million users as of May 2015. The company provides an online platform that allows its users to connect, read news, and share ideas. Twitter is essentially a micro-blogging platform in addition to providing social networking services. Twitter founders include Christopher Isaac Stone, Jack Dorsey, Christopher Isaac Stone, Jeremy LaTrasse, Noah E. Glass, and Evan Williams, who set up the company in March 21, 2006
Twitter trades in the New York Stock Exchange under the ticker symbol TWTR.
Why trade Twitter Stock
According to analyst predictions, Twitter’s gross sales are expected to rise year on year to $9 billion in 2021 up from $1.4 billion in 2015.
Twitter is facing considerable competition from other social networking sites such as Facebook and Google+. However, forecasts indicate that the company will continue to be profitable and the value of Twitter stock is likely to be stronger due to these reasons:
Increasing ad revenues
Twitter’s ad revenues are set to grow year on year. Presently, 90% of the company’s revenue comes from advertisements. Analysts predict more opportunities for Twitter in the online ad segment. Twitter is strongly positioning itself to take explore the $17 billion a year opportunity in online video ads in the U.S.
Twitter is investing heavily in research and development to increase engagement levels and to attract more users to the platform. The company is now competing in the video-streaming apps sector after realizing Periscope, its video-streaming app, which was well received.
Twitter has adopted a syndication model to increase its active user base. Through syndication, unique visitors who are logged out of Twitter can continue to see what is happening on the platform. Twitter is looking to monetize its syndication deals, something that could improve the company’s position and competitive advantage.
Type of Available Binary Options for Twitter Stock
The common contract types for trading Twitter stocks are:
- Basic Call/Put options: Predict if the price of Twitter stock will move up or down before the expiry time.
- Touch options: Predict whether the price of Twitter stock will touch the given strike price before the expiration time.
- In/Out: Predict whether the price of Twitter stock will stay within a range of two strike prices.
Possible Signals for Twitter Stock
- Analysts upgraded Twitter stock following a share price decline, which reduced the downside risk for the next year. Following the upgrade, Twitter stock rose by 1.2%.
- Speculation is rife that Google Inc. may buy Twitter although either company has not officially confirmed these rumors. These speculations always cause a hike in Twitter stock.
- Twitter made significant management changes following it’s less than impressive Q1 2015 earnings. Anthony Noto, the company’s Chief Financial Officer (CFO) will now also oversee the marketing department and has hired new finance mangers. Investors believe the change in management is good for Twitter stock.
- Twitter’s year to date stock performance is still strong and continues to outperform the S&P 500's index in spite of disappointing Q1 2015 results.
Factors Influencing Price of Twitter Stock
- Global growth in smart phone sales
- Increasing internet penetration in emerging markets, which may boost Twitter’s user base growth over the coming years
- Stiff competition from other social networks and mobile applications such as Facebook, Instagram, WhatsApp, WeChat