Twitter ($TWTR) is going through a rough time. The company is losing around $100 million every quarter. Their advertising revenue has slowed down tremendously. Heck, they can’t seem to even find someone to buy them.
Twitter investors, however, have it particularly hard. Though the company’s stock is up around 4% in the last year, their stock is down 12.34% today. It will likely continue to go down in the near future since the company’s ability to make money has decreased.
Twitter investors who bought the company around the IPO, however, are particularly peeved. If they held onto their shares from the beginning of the company’s existence on the stock market, they actually lost money.
How much? Let’s take a look.
When Twitter was first listed on the stock market, their shares were worth $45.10 each when the trading day started.
As of this writing, the company’s shares are worth $16.41 each. That’s a significant decrease over a 3-plus year period.
If you bought 20 shares of Twitter at $45.10 each (or $902), you would now have $328.20.
Twitter’s stock never split or paid any dividends since it went public. Thus, your initial investment of $902 would be $328.20, or $573.80 less that it was a few years ago. If you invested a little over $10,000 in 222 shares at the opening price ($10,012.20, to be exact), your current investment would be worth $3,643.02. That’s a loss of $6,369.18.
Should you buy Twitter right now? Analysts at UBS recently downgraded the stock from “Buy” to “Hold.” This means that instead of buying Twitter right now, you should look elsewhere. If you own Twitter stock, you should hold onto it until it has the chance to go back up. This could happen if the company gets another buyout offer or somehow increases their revenue streams.
Twitter’s stock, however, hasn’t been anywhere near the $45.10 range since April of 2016. If they can’t improve how they make money, retain users, or lure in buyers, it will likely continue to drop. If you have faith in the company’s future and do your research, then feel free to invest if you want. Yet if you want less volatile or more promising options, you should probably look elsewhere.