The shares of Twitter are trading higher today due to a rumor that Google is considering a proposal to acquire the popular microblogging company.
According to the rumor, Twitter engaged the services of Goldman Sachs to help the help the company resists any takeover bid.
Although some entities attribute the upward momentum of Twitter’s stock to the speculated potential bid by Google, the information is unsubstantiated. It is just a rumor. There are no official comments or news regarding the matter from both companies.
The stock price of Twitter rose more than 4% to $52.90 per share at the time of this writing, around 1:15 in the afternoon in New York.
Over the past 52 weeks, the shares of Twitter traded between $29.51 and $55.99 per share. The microblogging company gained more than 47% in stock value year-to-date.
Technical breakout: A more reasonable reason
According to Joel Elconin of Benzinga, a more reasonable reason behind the movement of the shares of Twitter is the “good, old-fashioned technical breakout to the upside.”
He explained, “After clearing the major resistance at the $50 level on March 24 reaching $51.79, the rally stalled the following day at $51.87; with the assistance of downgrade by Pivot Research, the issue returned to the former breakout level ($50) and consolidated at that level for five days.”
“Over the next three trading sessions, it grinded to the $51 level before soaring in Tuesday’s session. After a higher open (Monday’s close of $50.84 vs. Tuesday’s open $51.01), it retreated and found support just above the close, only reaching $50.86 before taking off.”
Twitter launches” retweet with comment” feature
Today, Twitter officially introduced its “retweet with a comment” feature, which allows users to forward a tweet to their followers and add their comment. The feature is now available to web and iPhone users. It will be available to Android users soon.
Meanwhile, Turkey blocked Twitter after the company refused to remove photos of a prosecutor who was taken as a hostage by militants in Istanbul. The Turkish government also blocked YouTube for the same reason.
A significant number of internet service providers (ISPs) in Turkey followed the instruction of the government to block users from accessing Twitter and YouTube yesterday. Prior to the ban, the Turkish government launched an investigation against newspapers in the country that published the hostage photos.