Twitter is having a phenomenal week. Its stock is surging in the wake of its entrance into the S&P 500.
Twitter jumped roughly 5 percent Tuesday, hitting a 3-year high, after Dow Jones Indices announced the social media company would replace Monsanto in the S&P 500.
Luckily for Twitter, Monsanto was bought out by Bayer yesterday, and Bayer decided they were going to leave the infamous agriculture giant's name right next to all of the skeletons of farmers whose lives they [purportedly] destroyed.
The move is not exactly a surprise — it makes sense that Bayer might want to weed out some of the intense negative associations associated with the Monsanto brand. In a way, it's an indication of how successful anti-Monsanto protesters have been in shaping public perception.
Monsanto has been known as one of the most hated brands in America for years and Bayer will only benefit from leaving the name behind.
On a different note, Twitter's entrance into the S&P 500 is very impressive, given that Twitter was one of the many problem children of Silicon Valley for many years. In fact, up until February 8th this year, Twitter had never turned a profit in the history of the company. It was almost 12 whole years before Twitter managed to generate revenue. That's literally over half of the years I have walked this Earth. On February 8th, the Dow was taking its second massive dip of the week, but Twitter saw massive growth from its first report of revenue.
Everyone knows the S&P 500 is the most well-known index on the market. When my professors mention the S&P in classes, all of the Buffet wannabes begin to drool over the most highly coveted index. Because of these S&P loyalists, trading volume has skyrocketed for Twitter.
Trading volume in Twitter on Tuesday quickly topped 40 million shares. It had already eclipsed the average daily volume from the past 10 sessions within about the first half hour after the market opened.
“The S&P 500 is without a doubt the most tracked index in the world,” said Dave Nadig, managing director of news and analytics publisher ETF.com. “All of those investors now have to own Twitter stock whether they want to or not.”
Twitter made some major changes in the past year to accelerate their growth and profitability. The largest change they’ve made is to double the maximum character count in a tweet from 140 characters to 280 characters. Controversial among different demographics, this update has allowed both scholars and idiots to spew their incredibly important opinions about everything with renewed vigor. On top of the new character count, Twitter has implemented unescapable video advertisements before popular videos.
The changes seem to be working for Trump's favorite virtual soapbox, and we hope Twitter can continue to adapt and grow in the current market.