Twitter stock on track for new all-time high


Twitter Inc.’s hot streak is continuing Tuesday with the stock on track to close at a new all-time high.

Twitter shares
TWTR,
+2.89%

are up 3.2% in midday trading Tuesday and on pace to post their first new record close since Dec. 2013. The stock is up for the 11th consecutive trading day.

While there was some concern earlier this year over the impact that Twitter’s ban of former President Donald Trump would have on user engagement, the company’s management team sought to dispel those fears during Twitter’s earnings call last week. Twitter disclosed that its increase in average absolute monetizable daily active users for the month of January exceeded the company’s historical average for the past four years, inspiring confidence among some analysts about the company’s ability to maintain user momentum without the buzz of Trump tweets.

The company’s latest results also prompted a former skeptic to soften his stance on the stock. MoffettNathanson’s Michael Nathanson upgraded the stock to neutral from sell last Wednesday, arguing that while the stock’s valuation still looks a bit stretched, investors don’t appear all that concerned about valuation in the current market, meaning that a continuation of Twitter’s most recent revenue-growth performance could continue to propel the shares.

Nathanson is also more upbeat about ongoing revenue initiatives at Twitter, including through its revamped mobile-app promotion (MAP) tool. “Truth be told, we think Twitter has the potential to drive new users and improve monetization if they can finally unlock the promise of performance-based marketing,” he wrote.

Twitter shares have gained 64% over the past month, as the S&P 500
SPX,
+0.07%

has risen 4.5%.



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