During 2017 the overall stock market had one of its best years on record. While it was very good for the market as a whole, tech stocks seemed to do even better than the rest. Companies including Apple, Google, Amazon, Netflix, and Facebook all seemed to do extremely well and all had gains of well over 40% during the year. 2018 started out just as well, but many of these tech stocks have experienced a major sell off similar to the rest of the market in February.
While many of the tech companies have experienced a poor start to 2017, one tech company that has continued to do well in 2018 is Twitter. While there was a time in 2016 that Twitter looked like it would have a very hard time competing with the other social media giants, the company has experienced a major resurgence as of later.
While Twitter started the 2017 trading year at around $15 per shared, overall market trends and the improvement in the company saw the stock price increase to around $25 per share by the end of the year. While other tech stocks have fallen below their year-end prices, Twitter has continued to look very strong (https://marketrealist.com/2018/02/twitter-rose-earnings-beat-last-week).
After reporting a very good earnings report and projections for the rest of the year, Twitter now looks as if it could keep going up in value. The company is now trading at around $32 per share and is expected to continue to increase in value.
After releasing its earnings on February 7, the share price of Twitter increased by more than 20%. This is not surprising given how strong the earnings were. Total revenue were around $731 million for the quarter, which was about 6.5% above analyst expectations and 2% above the same time period the prior year. What was maybe the most exciting part about the earning release was that the company actually reported a profit for the first time ever.
This could be a great sign that the company is on track to become even more successful than previously thought. Another strong selling point on the stock is the fact that the company is expected to have even better earnings in the coming years. This provides plenty of room for further stock growth.