Twitter’s (TWTR) first birthday as a public company was not a very happy one for investors. The stock closed at $40.31 on November 7: 10.6% lower than its opening price on IPO day and 45% off its 52-week peak, $73.31 on Dec 26, 2013.
Add to that the blow of a downgrade to “junk” rating from credit agency Standard & Poor’s and investors might be thinking if the company’s now iconic “fail whale” error image was oddly prophetic.
Still, TWTR’s rocky ride in the past 12 months means not all investors are nursing losses. Those who bought when the stock bottomed out at $30.51 on May 27, are now sitting on a 32.7% gain.
So how have TWTR investors really fared? SigFig has unique insight into this, as our portfolio tracker allows investors to sync their brokerage accounts, tracking more than $300 billion in total assets. Our findings were quite revealing:
1. Where are the ladies?
The vast majority of SigFig users who own TWTR — 88% — are male. In fact, TWTR is among the top male-dominated stocks among SigFig users: a finding consistent with a trend among male investors to prefer stocks (especially tech stocks), while female investors tend to gravitate towards mutual funds and healthcare stocks.
2. Do investors skew young – or old?
Roughly 4% of all SigFig users hold TWTR in their portfolios and the distributions among age groups (split into 10-year segments) is fairly even. It’s most popular among investors in their 30s (4.5% of all users), but those in their 40s have bet the most on the company, with an average stake of $21,100.
So how are they all doing?
As of Nov. 17, 2014, 66% of all SigFig users who own TWTR were underwater, with a median loss of 7.3%.
IPO buyers have fared a little better. Nearly a third — 28.5% — of investors who bought on Nov 7, 2013, are still holding onto the stock, with an average weighted loss of 2.8%.
And for nearly one in ten TWTR investors – 9%, a fairly small, but not negligible subset – the stock represents an average 26% of their net worth. Single-stock concentration is not uncommon among investors, in fact, and exposes investors to unnecessary risk. Those investors are likely seeing some gut-wrenching ups and downs in their portfolios: a risk that can be improved by properly diversifying with a set of low-cost index funds or ETFs.