This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Twitter Inc (TWTR) Rises, Investors Upbeat, Analyst Cautious

Stocks in this article: TGT TWTR TWX

Twitter Inc (TWTR) Inc shares have gained almost three times since the company issued its initial public offering IPO last month. On Thursday, the stock gained another 5%, making it one of the best performing stocks of the year, according to a report from The Wall Street Journal by Steven Russolillo and Maureen Farrell.

A remarkable rise after IPO

The micro blogging site surged 76% this month and added 182% after issuing its IPO in early November. At present, the company has a market capitalization of $39.9 billion, which is more than that of Target Corp's $39.5 billion and that of Time Warner Cable Inc's $37.6 billion, according to factSet. Both Target and Time Warner posted earnings of $341 million and of $532 million respectively, but Twitter Inc (TWTR) has yet to post a profitable quarter.

The micro blogging site, which is popular amongst celebrities and the entertainment world, has not announced any big development since its IPO issue on November 6 th. Twitter's stock has rallied after issue of its IPO along with some up gradation in its product, including a better mobile app and the addition of photos and videos on the user's main news feed. In order to allure users and enhance its ad effectiveness, Twitter Inc (TWTR) keeps on adding new tools.

Twitter shares have also seen an increase in their trading volumes, which indicates the upside in the stock. Trading volume was more than 5 times the stock's 30-day average trading volume.

Analysts not very optimistic on Twitter

Many investors are piling into the stock, which in turn is giving it upward momentum. For instance, Reuben Kressel bought 500 shares earlier this month, when the stock was trading around $52. Kressel said that the analysts were not very optimistic on the stock’s future, which excited him to follow the reverse strategy.

“Everybody was against it, and every day it was going up,” said Mr. Kressel.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs