Twitter Inc (NYSE:TWTR) is joining the S&P 500 index and will replace Monsanto Company (NYSE:MON), which is being acquired by Bayer. Year-to-date returns for the index are less than 3% while Twitter’s stock has soared more than 50% since the start of the year.
Being included in the S&P 500 will help give Twitter some more credibility as many investors likely remember it as a bad stock with poor prospects and weak financials. However, a lot has changed in the last year and Twitter is turning out to be a very strong investment option for investors looking to take advantage of a bullish industry and a stock that still has a lot of upside.
The social media stock has doubled in the past 12 months as it is making up for the poor years following its IPO. In after-hours trading on Monday the stock was inching towards $40, which would be a new 52-week high for the tech stock.
In its past two quarters, Twitter has been able to post strong profits with an average margin of 11% during that time. Sales were also up over 21% in its most recent quarter.
Despite many options for users to update their statuses and post their thoughts, Twitter remains a popular choice among young people as there is no shortage of activity on the social media platform. It has a lot of appeal for users looking to quickly glance at the top news and to see what’s trending, and it’s even the preferred medium for the U.S. President.
Tech Insider
