Boston, MA 01/16/2013 (wallstreetpr) – The stock of Twitter Inc (NYSE:TWTR) can be seen returning to the best levels it enjoyed since IPO in November. The stock is currently rating at $61.57 as per the Wednesday regular session closing. In the past few weeks the stock pull backed as analysts grew less optimistic about the company’s growth prospects.
At the center of the bearish sentiments on Twitter Inc (NYSE:TWTR) stock was valuation concerns whereby the stock comes across as heavily overvalued. Some analysts sought to warn investors that things could take a turn for the worst in the stock if buyers continued to disregard the weak fundamentals in the company.
The soar in Twitter stock was linked to the imbalance in demand-supply given that the company only offered 70 million shares at the IPO. The soaring of the stock was also fueled by ad revenue prospects in which the company looked well positioned to generate more ad revenue from mobile platform than its rival Facebook Inc (NASDAQ:FB).
Reality check
Even though investors never questioned the valuation of the stock and kept on pushing it up, it emerged in the past few weeks that Twitter Inc (NYSE:TWTR) was not any better placed than Facebook as far as mobile ads revenue is concerned. This came after Facebook showed rare moves to revitalize its mobile platform to attract more brand advertisers. The fact that Facebook has the numbers which advertisers are looking for, served to cool Twitter Inc (NYSE:TWTR) on its track.
New wave of gain
The stock of Twitter Inc (NYSE:TWTR) is rising again and this time around the rise seems to be linked to the forthcoming earnings release which has been slated for February 5. Not that the company is expected to post profits in the earnings but it will be expected to show the progress it is making in adding subscriber numbers, mobile penetration, revenue expansion and cost-reduction.
It is worth noting that Twitter Inc (NYSE:TWTR) will continue taking corrections especially after the release of the earning data for the current quarter.
