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.