This Day On The Street
Continue to site right-arrow
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!

Why Twitter Shares Have Soared Over the Past Month

Stocks in this article: TWTR FB AMZN

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

Select the service that is right for you!

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!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • 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