This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Twitter Inc (TWTR) Trade Volume Skyrockets, Drudge Predicts Big Crash

Twitter Inc TWTR's trading volume today more than tripled today as investors push the company's stock to new highs.

Twitter Inc (TWTR - Get Report) shares are now worth nearly triple what they were at their initial public offering last month, and their price just keeps going up. Shares surged nearly 5% today, hitting yet another new high, and volume went through the roof. The company’s daily average stock volume is a little over 15.2 million shares, but today, more than 61 million shares of Twitter have traded hat tip @optionmonster. And the trading day isn’t over yet.

Twitter share volume soars

By the time you read this, that 61 million number could be greatly under what you see if you check because it looks like shares of Twitter just keep changing hands over and over. Just check out Twitter Inc (TWTR - Get Report)’s on Google Finance and hit refresh a few times if the trading day is still open. This number is still popping.

According to CNBC, Twitter’s $40 billion market capitalization makes it more valuable than much of the S&P 500. The Wall Street Journal reports that Twitter will be one of the top 100 companies within the index. It is even outpacing other social online companies, including Facebook Inc (FB - Get Report), Yelp Inc (YELP - Get Report) and LinkedIn Corp (LNKD - Get Report). None of them achieved the same extraordinary gains Twitter has during their first couple of months on their respective stock exchanges.

Matt Drudge sees “horrific” crash ahead for Twitter

Because of the dramatic exuberance over Twitter Inc (TWTR - Get Report), Matt Drudge of the Drudge Report tweeted that he sees a major crash ahead for the micro-blogging site’s stock. According to Drudge, the upcoming crash of Twitter shares will be “horrific.” He questions how company like Twitter, which has yet to turn a profit, can hit a stock value of $41 billion.

Business Insider‘s Jay Yaro suggests some ideas about why Twitter shares have performed so well so far this year. He notes that so far this month, the site’s shares have risen approximately 80%. Just in the past week, they have risen 33%, and he says “no one really knows why.”

Why might Twitter be doing so well today?

Yarow suggests some possibilities, including a short squeeze, major funds buying Twitter Inc (TWTR - Get Report) just so it’s in their portfolios, investors “suddenly” seeing mobile ads as being “huge,” or “something else.” Today in particular, Twitter shares may be affected by a report which indicates dramatic increases in the company’s advertising share. The number of advertisers using Sponsored Tweets rose to 52% this year, according to a report from IZEA.

-By Michelle Jones

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.81 0.00%
LNKD $123.11 0.00%
TWTR $14.12 0.00%
YELP $21.42 0.00%
AAPL $93.24 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs