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

Why Twitter Shares Have Soared Over the Past Month

Following the company's first-quarter earnings, Twitter CEO Dick Costolo promised to increase user engagement, making changes to the login process on mobile, making photos more prevalent and changing the look of people's profiles. Twitter has offered a look that's more similar to Facebook than the previous version of Twitter.

"We think of Twitter as this companion experience for what's happening in your world," Costolo said on the company's earnings conference call. He added that Twitter is already a mainstream platform, with users beginning to realize the value of the platform. It appears Twitter has done that, as it now shows World Cup scores on its home page, as well as various customizations pertaining to the World Cup.

In May, sentiment for Twitter had gotten extremely low, with the Relative Strength Index (RSI) on Twitter near 20, a level indicating the asset is sharply oversold and is due for an upturn. Currently, the RSI is approaching 70, a level that indicates the stock is overbought, and may be due for a pull back.

Despite the sharp run since the middle of May, Twitter still has several things going for it. The company, unlike other nascent technology companies, is profitable on a non-GAAP basis, having posted break-even results for the first quarter, on revenue of $250.49 million, beating analysts' estimates of a loss of 3 cents a share and $241.47 million in sales.

This morning, Twitter also announced a new CFO, Anthony Noto, the former Goldman Sachs investment banker who helped take the company public. Noto will receive an annual salary rate of $250,000, and will receive a one-time stock award in the form of Restricted Stock Units for 1.5 million shares of Twitter, vesting over four years. He'll also receive a one-time option grant to buy 500,000 shares of Twitter common stock on the date of grant, vesting over 4 years.

Noto replaces Mike Gupta, who will become Senior Vice President, Strategic Investments within the next 30 days.

Outside of boosting App Install ads, the company appears to be expanding into new businesses such as e-commerce, including a recent deal with Amazon (AMZN), as well as recent images cropping up of "Buy Now" buttons being placed on tweets. Twitter also just confirmed it acquired New York-based mobile ad startup TapCommerce, for a reported $100 million.

Twitter could not be immediately reached for comment for this story.

Wall Street has chided Costolo time and time again, as the company only has 255 million monthly active users (MAUs), compared to more than 1.2 billion for Facebook. Though Twitter may never wind up being as big as Facebook in terms of user base, the company is demonstrating that it is working on increasing engagement, and making it a more user-friendly experience.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

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 $118.57 0.84%
TWTR $14.40 -1.50%
AAPL $93.66 -0.09%
GOOG $698.30 0.76%
TSLA $241.82 0.44%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs