New high for Twitter shares
Investors piled into Twitter for the second straight day, lifting its shares to more than US$52 ($57) and setting a new intraday high on Tuesday even in the absence of any significant announcements from the social media debutante.
Shares of Twitter were up 6 per cent to US$52.20 after a frenzied trading session on Monday, when Twitter closed up nearly 10 per cent, its biggest gain ever.
Since the loss-making San Francisco-based firm held its closely watched initial public offering last month, its fans on Wall Street have strained to reinforce the bull case for a stock priced at increasingly inflated multiples compared to social media peers like Facebook and LinkedIn.
Twitter has released a spate of management news and product updates since its IPO, but some announcements, such as the official roll-out of a lucrative, cookie-based ad targeting technology called "targeted audiences," have been preceded for months by prior announcements.
In a research note on Friday, Evercore analyst Ken Sena said "targeted audiences" has been publicly in the works but raised his price target anyway from US$43 to US$52 because the deployment of the technology "might not be as costly as we originally modeled".
Twitter which went public on the New York Stock Exchange on November 7, is now trading at roughly double its IPO price of US$26 a share with an implied valuation of more than US$26 billion on just US$168.6 million in revenue in the third quarter.
The San Francisco-based firm touched its previous intraday high of US$50.09 on the day of its IPO.