Twitter stock has rebounded by more than 40 per cent in the past 3 weeks

Jack DorseyBill Pugliano/Getty ImagesTwitter CEO Jack Dorsey

Twitter shares have regained a lot of lost ground in the three weeks since the company reported an ugly fourth quarter report.

The company’s stock returned to the $20 level on Friday for the first time since mid-January, and the shares have increased roughly 40% since bottoming out at $14.31 at the close of market on February 11.

That’s not to say that the company’s business prospects have brightened significantly in the past few weeks. Twitter remains under pressure as its user growth stalls (and by some measures even shrinks) and as the company suffers from major executive turnover.

But the battering the stock has taken in recent months was an over-reaction, argues Pivotal Research analyst Brian Wieser.

“It was ludicrously cheap,” Wieser tells Business Insider.

“It’s not hard to be comfortable with fact that they have got a good commercial story. User growth matters but nowhere near as much as investors think. Some investors take a long view and think the stock’s cheap,” said Wieser.

And of course, the broader market has rebounded since February 11 as well, with the Nasdaq up roughly 11% since then and the Dow Jones Industrial Average up roughly 9%.

Here’s a look at Twitter’s (blue) versus the Dow (green) and the Nasdaq (red) during the past month:

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