World Cup helps Twitter add $7bn to market value
Unexpected user surge leads to largest single-day stock-price gain
Twitter Inc's share price surged by 35% yesterday on the back of a 24% boost to monthly active users seen during the Brazil-hosted FIFA World Cup, Reuters reported.
The user increase represented accelerated growth at a time when investors had become concerned that figures had already peaked. The resultant share-price bump is the company's largest-ever single-day gain and added almost $7bn.
Twitter had previously recorded slowing growth and had lost 40% of its value since January.
"The expectations going in had become quite low," said Arvind Bhatia, an analyst with Sterne Agee. "Even in the U.S. their performance was good. For now, that will put to rest some of the concerns about U.S. growth.
"One would still have to say that the jury is still out... You have to look maybe at what happens in the next quarter and see if they can continue to have upside on the user growth."