(C) Reuters. Up 19% in the Past Month, Will the Rally in Twitter Stock Continue?
The shares of social media giant Twitter (TWTR) have gained 18.6% over the past month on the back of the company’s first attempt at building a subscription business model and a substantial improvement in its advertising revenue. However, given the challenging business environment in a key growth market and the company’s weaker-than-expected second quarter outlook, will the stock be able to maintain its rally? Read more to find out.Shares of social networking giant Twitter, Inc. (TWTR) have soared 18.6% over the past month on the optimism surrounding its recent launch of its first subscription service – Twitter Blue, and on the company’s plans to accelerate the pace of its new-product launches. Over the past year, the stock has gained 121.1%, driven by the company’s continuing improvement in average monetizable DAU and brand advertising.
TWTR’s stock is currently trading 15.7% below its 52-week high of $80.75, which it hit on February 25. And although the company reported strong year-over-year MAP revenue growth in its last reported quarter, its disappointing second-quarter outlook could be a concern.
In fact, a recent tussle over India’s IT rules and the country’s increasing regulatory scrutiny have made investors nervous about TWTR’s prospects. Since India is a key growth market for the company, they fear the challenging environment their could have a negative impact on its shares in the near term.
Up 19% in the Past Month, Will the Rally in Twitter Stock Continue?
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