After a lot of obstacles and problems this year, Twitter finally has some good news. It has seen a bump in its stock value. This is great for the company that has been finding it difficult to win over investors.
What caused the Twitter stock rise?
The company made two huge moves that probably contributed to this optimism. Twitter said it would begin enforcing new rules related to how it handles hateful and abusive content on the platform. This is a problem that has been causing Twitter a lot of issues over the past few years. Disney was in talks to buy Twitter and they stepped back due to this problem. That should say enough about the magnitude of this issue.
But the second, which is more likely to be the bump for the stock, is an upgraded rating for the stock from a big Wall Street Firm. The firm in question is JP Morgan. The firm has issued a note that showed some positive sentiment for the company.
Twitter’s stock jumped nearly 10% this morning. This means it adds a few billion dollars to its market cap. If things keep going the way they are, it may finish the year up around 30%. Since going public, the company has struggled. They have failed to show Wall Street that it can grow at the same clip as Facebook. Furthermore, it has failed to keep its abuse problems under control.
Another social media network, Snapchat is facing the same issue. The user growth of both these networks have stagnated which has made investors reluctant to jump aboard. Twitter has not done enough in form of updates to change this. Their most significant update was expanding its character count to 280 for Tweets. Hopefully, managing the abuse side of things will bring up the network.
