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Twitter closes at a 3-year high

Jun 5, 2018, 01:51 IST

Markets Insider

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Twitter closed up 3.41% Monday to settle at $3.7.90, its best level in three years.

Shares got off to a red-hot start in 2018, rallying more than 50% by the middle of March. That move was propelled by a fourth-quarter 2017 earnings report that boasted the company's first-ever net profit. That marked the fifth straight quarter of double-digit daily active user growth, which Jefferies analyst Brent Thill said "points to better engagement from its core user base." He concluded that the company is "on the road to recovery."

But, shares surrendered the bulk of those gains in the wake of Facebook's Cambridge Analytica data scandal. As investors sold Facebook shares amid concerns that new data regulation would hurt user growth and advertising prices, so too did they sell Twitter stock.

But share once again rebounded, due in large part to another strong earnings report. First-quarter earnings beat Wall Street expectations in almost every category, and the stock hasn't looked back since.

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Twitter is up 58% this year.

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