BTW 250

TWITTER (X-CORP)
By Group 4
 SUMMARY
Once a thriving company, Twitter (X)
under new ownership is diving deep Into
the negative margins. Because of
management and their position in the
industry we believe Twitter is not a
company an individual should invest in.
This report covers the history of Twitter,
as well as the strengths, weaknesses,
opprotunities, and threats to Twitter that
make it overall an unsound investment.
HISTORY OF TWITTER

Twitter was founded in 2004 by Evan Williams, Biz

Stone and Noah Glass. The app was released to
the public in July 2006. Jack Dorsey became the
first CEO of twitter. Originally, Twitter was created
for friends to be able to communicate through blog
type posts, but it quickly became a platform in
which journalists and politicians would use it as a
source of communication to share news. the
company became public in 2013, but would later
revert back to a private company when it was
bought out by Elon Musk. He purchased the
company in October of 2022.
STRENGTHS OF TWITTER
Few competitors

Currently, Twitter’s main strength is

that the company does not have
any strong competitors. There is not
another social media platform that
has been able to duplicate Twitter’s
format. Another strength is the
amount of people that are familiar
with Twitter, it is very popular
especially among celebrities and
political figures. Political figures
use Twitter as a platform to gain
more votes and spread information
on current issues that they believe
people should be aware of.
Twitter’s format has made sharing
news and opinions easier for
people.
 STRENGTHS OF TWITTER
Brand Awareness
In today’s digital-centric world, Twitter stands as a powerful platform for
businesses looking to enhance their brand awareness. It allows for rapid
dissemination of content, reaching both existing and potential customers
with ease. Businesses can leverage Twitter’s real-time nature to share
updates, launch new products, or simply engage in the daily
conversations that align with their brand's voice and values. Hashtags, in
particular, provide a means to increase the visibility of content beyond
just the followers of a business account, tapping into wider conversations
and trends. By actively participating in these trends, businesses can
place themselves in front of audiences who may not have been
reachable through traditional marketing channels. Moreover, the
platform’s multimedia capabilities allow for the sharing of images,
videos, and live broadcasts, which can showcase a brand’s human side
and contribute to a more personal connection with the audience.

The ability to quickly

promote user-generated
content related to the
brand also creates a
sense of community and
loyalty among customers,
further solidifying the
brand’s presence in the
market, and will help
Twitter in the long term
development.
 STRENGTHS OF TWITTER

Influencer Accesss
Twitter's "Influencer Access" is a significant strength that sets it apart in
the realm of social media. Unlike traditional media where celebrities are
unapproachable, Twitter offers an accessible, democratic platform
where these influencers can engage directly with their audience.
This direct line of communication allows for a more personal connection
between public figures and their followers. Influencers can share
thoughts, news, and insights in real time, providing a level of immediacy
and authenticity that is often filtered out in more formal settings. For the
public, the ability to make interactions with influencers creates a sense
of participation.
Weakness of Twitter
Twitters Chaotic leadership
Since Twitter acquisition in late 2022, the new owner,
Elon Musk has made many sweeping changes to the
platform that has led to kickback from the community
and even lawsuits. The largest and most visible change
that Musk made is the rebranding to X. This was so
quickly that the company and community is still catching
up . As an example, almost all of Twitter URLs still say
[Link] instead of [Link], and most users still refer to
Twitter as Twitter. One of the quieter but still largely
impactful changes Musk has made is laying off many
employees, including large parts of its content
moderation team. This has led a rise in hate speech
(Hickey et al), which in turn has led to many advertiser to
stop advertising on the platform
Weakness of Twitter

Twitters Lack of profitability

Since Twitter first went public in 2013 i it has been
profitable only twice, in 2018 and [Link] most, if
not all of Twitters lifespan , its main source of
income comes from advertisers. This is important
because from October 2022 to January 2023 , of
Twitters top 1000 advertisers it had lost 65% of ad
revenue, leading to projections of bigger net
losses. Not only is Twitter expected to lose more
money this year, in October 2023, Twitter re-
evaluated it net worth as 19million dollars, down
over 50% from what is worth just over a year
previously.
TWITTER’S OPPORTUNITIES
E commerce
Twitter has become a significant platform for e-commerce businesses by
providing a unique space to connect with consumers, promote products,
and drive sales directly through social interactions. However, beyond
working as a platform Twitter can carry out its own integrated shopping
platforms. By utilizing Twitter's advanced targeting capabilities, the
platform can showcase its products to a finely-tuned audience based on
demographics, interests, and behaviors, increasing the relevance and
effectiveness of its marketing efforts. This personalized approach, allows
Twitter to capitalize on impulsive buying behaviors, particularly during
time-sensitive promotions or product launches. Additionally, the ability to
use rich media in tweets means that Twitter can provide engaging
content. All these elements coalesce into making Twitter not just a
platform for communication, but a potential e-commerce channel that
allows businesses to thrive in the competitive digital marketplace.
TWITTER’S OPPORTUNITIES

Advanced AI Technology
AI can enhance content moderation by
more accurately identifying
misinformation. Advanced AI could
significantly reduce the workload on
human moderators and increase the
speed at which offending material is
removed, improving the safety and
quality of the platform.

Meanwhile, advanced AI technology can

analyze users' behavior, preferences, and
interactions to personalize the content
they see on their feeds. This can lead to
a more engaging user experience,
increasing time spent on the platform
and user satisfaction.
Advanced AI techniques could
optimize advertising delivery
by predicting which users are
most likely to engage with a
particular ad and determining
the best time to show it. This
would enhance the
effectiveness of ads, providing
more value to advertisers and
potentially increasing Twitter's
ad revenue.
 TWITTER’S THREATS

Meta Platforms
Meta Platforms is the parent company of
Instagram and Facebook, a social media
giant. Meta recently introduced their
newest platform, Threads, which has a
data sharing model eerily similar to
Twitter. The platforms brief character-
limited posts are almost one in the same.
Although Threads has not taken off as
fast as it hoped to, there is a true market
opprotunity for them as Twitter (X) loses
steam.

Under its new management and

ownership, Twitter (X) is
extremely vulnerable in the
market. Valued at a fraction of
Meta’s 760 billion, Twitter’s
market value sits at just 19
billion- which is less than half
if what Musk paid for it.
Because of these massive
losses, Threads is a threat to
Twitter now more than ever.
TWITTER’S THREATS
One of Twitter's biggest competitors that not
many in the West have heard of is WeChat. In
China it is the Everything app: it has messaging,
video conferencing, video games, mobile
payment, photo, video, and location sharing. As
of Q2 2023, there are over 1.3 billion users
worldwide, which is almost triple the user base
of Twitter. The only saving grace that Twitter has
is that WeChat has not caught on in the West
yet.
 Conclusion
While Twitter does have plenty of opportunities for growth such
as brand awareness, large market share, e-commerce
opportunities, and advanced AI technology, its chaotic and
unpredictable leadership will make it unlikely to be able to
capitalize on said opportunities, and as it stands currently twitter
is unprofitable and is likely to continue to be unprofitable making
Twitter a bad investment. This is especially true when looking at
its rivals, who have much of the same opportunities to grow, while
having much more stable leadership
 Citations
1. [Link]
2. [Link]
20/the-top-20-beauty-influencers-on-twitter-in-q2-2021/
3. [Link]
4. [Link]
decline/[Link]
5. [Link]
users#:~:text=How%20many%20people
%20use%20WeChat,been%20increasing%20year%20after%20year.