Twitter Closes at Record as Advertising Market Recovers

(Bloomberg) -- Twitter Inc. shares rose to an intraday record on Tuesday, taking out an all-time high that has stood for nearly its entire life as a public company.

The social-media platform gained 2.9% to close at $73.96. The shares have climbed for 11 straight sessions, their longest winning streak since August, and during the session rose as much as 4.1% to an intraday record of $74.84. The previous peak was reached in December 2013, less than two months after it went public.

The advance is the latest milestone for the company, which has advanced about 37% this year, shrugging off a brief decline that came after it permanently banned Donald Trump in the wake of the riot at the U.S. Capitol.

Like peers Snap Inc. and Pinterest Inc., Twitter has benefitted from a recovery in digital advertising. Earlier this month, it reported fourth-quarter revenue that beat analysts’ projections, though it warned that user growth may slow in 2021, following last year’s pandemic-driven surge.

“Twitter’s 2021 outlook is supported, in our view, by growing user engagement and prospects for increased digital ad spending,” said Mandeep Singh, an analyst at Bloomberg Intelligence.

Despite the recent gains, Wall Street remains mixed on Twitter’s longer-term prospects. According to data compiled by Bloomberg, 12 firms recommend buying the stock, compared with 24 that have a neutral view and five that have a bearish rating. The average price target of nearly $62 is about 17% below the current price.

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