Shares of technology stocks were mostly flat to middling today, with the rocketing GoPro IPO standing out. Twitter, however, a company still down heavily from its earlier post-IPO highs, advanced 5 percent.
Why? Positive external forecasts. Evercore Group indicated that it thinks Twitter’s domestic user growth could best its first quarter tally, reassuring skittish investors worried that the social company didn’t have the mojo left to attract more eyeballs to its service.
In its report, Evercore said that Twitter could see 20 percent year-over-year growth in its domestic user base in the current quarter. Twitter and other social companies generally have an easier time extracting revenue from domestic customers. So Twitter’s local audience is likely a key driver of its revenue growth.
Twitter has performed well financially since its debut. Its share flew from its initial $26 pricing, cresting the $70 mark before retreating, eventually falling to around the $30 mark. In its two quarterly reports since its IPO, the company’s lackluster user growth figures have overshadowed quickly advancing revenue.
Twitter closed today at $41.44. Its recent recovery has been somewhat quiet, with the company steadily growing its market cap since the start of June. Provided that Twitter can prove that its days of audience growth are not behind it, investors could fall back in love with Twitter.
According to Google Finance, Twitter’s value ended regular trading at around $24.4 billion.