It was just a couple of weeks ago when Twitter hit $50, and on Thursday, it set a new record by jumping past $70.
On Thursday, Twitter shares surged past $70 mark to hit a peak of $74.31 before settling at $73.31 on the NYSE.
The recent spike in Twitter share price has confounded many stock market pundits, with many financial experts citing disbelief at the recent turn of events.
While some financial veterans have advised caution regarding Twitter's current strong showing at the stock market, many investment advisers believe that smaller investors are driving up the prices for Twitter stocks. While people generally think of multi-million dollar investments when anyone brings up the topic of stock markets, the sheer number of average individuals who invest in companies of their choosing can actually have a marked effect on the prices of stocks. This is what many investors believe to be the reason behind Twitter's impressive stock performance as of late.
While the recent turn of events may be tempting for some, financial advisers continue to view Twitter's current position as untenable and unsustainable in light of the fact that Twitter has yet to turn a profit. Some advisers simply refuse to believe that Twitter now has a market cap valued at around $40 billion, which puts it ahead of LinkedIn and slightly behind Yahoo Inc.
However, Twitter is not the only company riding the confidence wave. Amazon topped $400 for the first time this week and Google hit the moon, closing at an mind-boggling $1,147 per share. Yahoo is also treading in the $40-plus, a territory it hasn't trodden since 2005. Facebook is also hovering in the $50-plus territory, with its shares doubling in value since June.
