Twitter share price rises sharply on recent moves

on Dec 10, 2013
Updated: Oct 21, 2019
Listen, Tuesday, December 10: Yesterday Twitter Inc’s (NYSE:TWTR) shares rose to their highest level since the initial public offering last month, touching an intraday high of $50.09. The stock closed 9.3 percent up at $49.14 on the New York Stock Exchange.

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The sharp rise was prompted by a series of product releases designed to generate more advertising revenue.
**Good news**
Investors have become increasingly optimistic about Twitter’s prospects, on the back of recent progress at the company. Perhaps the most important development in the last few days was the announcement, last Thursday of the global availability of ‘tailored audiences’ – a new product that allows advertisers to target users with highly relevant ads based on their web browsing history. The technology, which has been tested for several months, is expected to boost Twitter’s revenue by enabling the company to charge higher rates for more relevant, individually-tailored ads.

Susquehanna Financial Group’s analyst Brian Nowak told Bloomberg: “We’re seeing that there’s a lot they can do with targeting and retargeting for advertisers. Over time it will help them grow into their valuation.”

Twitter also announced last week a tie-up with Singapore-based tech start-up U2opia Mobile to provide a way of accessing its service to hundreds of millions of users in emerging markets, who don’t have Internet access on their mobile phones. Users will only need to dial a simple code to get a feed of the popular trending topics on Twitter, according to U2opia Mobile’s Chief Executive and Co-founder Sumesh Menon. The service, which will launch in the first quarter of next year, could expand Twitter’s reach into markets where smartphones and high-speed wireless networks are less common.

Twitter appointed Marjorie Scardino, the former CEO of UK-based media group Pearson, to its board of directors last week, addressing some criticism over the lack of women in its top ranks. Scardino, who joined the board with immediate effect, became the first female member of the company’s board (Twitter share price: Ex-Pearson CEO named first female board member).

Finally, Twitter has joined forces with a number of fellow tech companies, including Apple Inc (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG), in urging the US government to reform its surveillance laws to preserve the public’s trust in the Internet (Apple share price: Tech giants demanding government surveillance reform).
The release of new products should help Twitter to increase revenue and eventually turn a profit. According to analysts surveyed by Bloomberg, this won’t happen until 2016. However, yesterday’s advance in the share price suggests that investors have embraced the company’s actions as steps in the right direction.
**As of 10:00 UTC buy Twitter shares at $49.40**
**As of 10:00 UTC sell Twitter shares at $49.25**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


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