New Delhi: Twitter shares rose over 9 per cent on December 9 to their highest level since the company's initial public offering as new advertising products spurred optimism about the social-networking company's future sales growth.
The company has been adding features for advertisers to help them reach its over 230 million users. Earlier, Twitter expanded a tool that lets marketers show individually-tailored ads, based on websites the user has previously visited. The company believes this will result in higher-ad prices. Such new offerings are helping to justify the stock's price, said Brian Nowak, an analyst at Susquehanna Financial Group.
Twitter has earlier allowed marketers to show individually-tailored ads, based on websites the user has previously visited. This will result in higher-ad prices. And this has boosted investor confidence that the social network can earn money.
At the same time the company also announced the launch of its text-only service to those who are not connected to the Internet.
San-Francisco based Twitter is not predicted to make a profit until 2016, based on the average estimate of analysts surveyed by Bloomberg. But judging by the relative performance of its competition, Twitter's public offering looks like a resounding success.
