Merry Christmas to Twitter’s shareholders!
On a half day of trading for Christmas Eve, Twitter’s stock went nuts, soaring 8.4% to $US69.96.
We have no idea why Twitter’s stock is going bananas, but it’s been on a ridiculous tear since December 2, as you can see in the chart below from Yahoo Finance.
For fun, we plotted Facebook versus Twitter since Twitter’s IPO. Facebook has been flat relative to Twitter.
At $US70, Twitter is blowing past just about every analyst’s price target. Last we checked the average target on the stock was ~$46.
Twitter was up 7% yesterday, too. Blake Harper at Wunderlich Securities says the stock has “cult status” now, and he recommends selling it because he thinks the valuation is way too high.
The only explanation we’ve seen for Twitter flying is that people think its ads are going to be a big deal. That’s entirely possible! But Twitter hasn’t announced anything new in a while, so there’s no apparent reason for the stock to be up 7%, then 8%, in back-to-back days.