Twitter’s stocks price has been on a steady decline since middle of 2015, with good reason. The company still hasn’t shown a profit, it’s user base is static and many new features they add never seem to be popular with their users.
Since the IPO in 2014, the price has declined from a high of $56 down to current lows of $14. The chart below shows the sorry state of Twitter stock price right now.
However, since being reinstated, CEO Jack Dorsey has begun to make some changes that could just spark some life into user growth.
Recently he added the feature to insert moving GIFs into a tweet. Whilst nothing groundbreaking, it gives users a way to express themselves in more than the 140 character count that is currently available.
Also, there are big world events on the horizon. The Olympics and Presidential Elections are two such events that will benefit Twitter and it’s focus on live updates. Because of this, and the companies year on year growth, I forecast Twitter as a buy from these current levels, and would be looking for a target price of at least the IPO of $40 in the medium term (say 12 to 24 months).