Shares of Twitter’s stock unexpectedly jumped to an all time high this week, soaring past a $70 per share. The company’s stock is currently priced at $73.82, pushing the entire social network’s market value past $40 billion. It’s unclear exactly why Twitter’s stock performed so well over the past few days, though some analysts believe it’s thanks to the company’s perceived potential to increase ad revenue.
The social network went public earlier this year in November at $26 a share before quickly jumping to $45 its first morning, and has since increased in value by 169 percent. Twitter’s strong relationship with the television industry and the promise of increasing ad revenue are two catalysts that have helped drive investor confidence in the company. Still, some analysts view the recent rally as unjustified, and warn that the company’s stock price is primed to crash in the near future.
Twitter has yet to issue its first quarterly earnings report as a publicly traded company, and ahead of its IPO, the social network revealed it has yet to turn a profit despite increasing revenues. How the micro-blogging site, which currently boasts a stock price high above Facebook’s $57.97, will fair in the long run is a mystery, but the pressure is definitely on for Twitter to show some real progress in the near future.