NEW YORK (TheStreet) -- Twitter (TWTR) - Get Report is a month away from its first birthday as a publicly traded company on the New York Stock Exchange. So what do investors need to know about the social network now? And where is it going?
First, let's look at the stock's performance thus far.
On Nov. 7, 2013, shares of Twitter soared to close almost 73% above their offering price in their first day on the stock market. The social media giant hit $50 per share at one point and even hit its all-time high of $74.73 on the day after Christmas (a gift to investors).
The first half of 2014 has been a lull for Twitter, as the stock retraced before bouncing off of $30.
Based on the current chart, Twitter is showing the strength it needs to reach all-time highs by 2015. From a technical standpoint, the moving average convergence-divergence indicator, or MACD, is starting to make a upward crossover, which is a bullish sign for a new breakout.
On Friday, Twitter also broke through previous resistance areas of $53.64 and should not have an issue finding great support in the $56 to $58 range. (On Monday as of 1 p.m., the stock remains in that range, at $53.67.)
As the gap toward $75 closes, a solid earnings report and a great outlook on Nov. 4 could send Twitter past $100.
On a fundamental standpoint, Twitter's mark on social media is that of a sector leader, like much larger rival Facebook (FB) - Get Report . Developers at Twitter have turned Ads API into a billion-dollar worldwide ad-revenue stream, more than 60% of which will come from mobile advertising.
With more than 271 million monthly active users sending more than 500 million tweets per day, Twitter has become one of the world's most popular social media companies. Promoted tweets, accounts and trends are feed into Twitter's profitable revenue growth strategy, which is showing no sign of slowing down.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."
You can view the full analysis from the report here: FB Ratings Report