Twitter’s shares were up more than 4 percent, or roughly $3.80, in mid day trading Thursday on the New York Stock Exchange.
It’s been a steady tear for the social media firm since early December when it was under $45. Today it was trading at $73.90. Remember it was only early November when the company went public, priced at $26 per share.
What’s going on? The company hasn’t made any announcements recently, so it’s not a news-driven rally.
Jay Yarow at Business Insider posits a few theories, including that investors think Twitter has the potential to be a media and advertising blockbuster like Facebook. Another theory: Investors just want TWTR in their portfolio before the end of the year.
The Wall Street Journal raises the “Christmas Cult stock” theory, which is that the stock has achieved a cult status and that investors think normal metrics are irrelevant when it comes to Twitter.
Wunderlich Securities is quoted as saying “the stock may be influenced by the investor sentiment to own what they perceive as the next dominant media/tech platform and a limited float that may push the stock higher in the near term.”
As the Journal notes, short sellers have started to flock to the stock, betting on it crashing soon.
Twitter, which pulled off its successful IPO in part by controlling expectations, still has much at stake in keeping investors’ expectations in line with what it can deliver and when.
Above: Twitter’s icon. (Laura A. Oda/Bay Area News Group).