Twitter shares get 9% bump on new offerings
Cookie-based ads service, text-based tweeting for feature phones push stock to $49
A number of new product announcements by Twitter Inc drove shares up 9.2% yesterday, to reach their highest since the company's lucrative 7 November IPO, Reuters reported.
Shares reached a high of $49, close to their day-one trading high of $50. Since the abatement of IPO fever the stock had been trading in the low-$40 range.
Newly launched offerings by Twitter include a system that uses a Web browser's cookies to target ads at users based on their browsing history. Also planned is a text-only version of Twitter that will not require an Internet connection, allowing it to work on entry-level mobile phones.
Analysts also pointed to Apple's acquisition of Topsy, a firm that specialises in unlocking business insights from Twitter's archive of tweets. The high-profile purchase may have acted as further confirmation that Twitter's information store holds high value for decision makers.
Since Twitter's flotation, analysts have been split on the firm's prospects, with early 12-month projections on the stock ranging from $29 to $54. Critics have expressed reservations over the company's light intellectual-property portfolio, and the fact that it has yet to record a profit. Optimists cite Twitter's 230m users and its archive of posts.
Twitter's market capitalisation is close to $25 and it is projected to make $1.1bn in 2014.