Twitter Inc (TWTR) Shares Spike On New Ad Products

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Investors are starting to believe Twitter Inc TWTR really could grow into its valuation thanks to new advertising products. Shares of Twitter Inc ify.valuewalk.com="" /> rose more than 9% today after the company announced it is enhancing its advertising offerings. The most recent enhancement was the completion of the rollout of its Tailored Audiences feature. According to Bloomberg, this is the most Twitter shares have risen since the company���s initial public offering. Today���s rise makes Twitter one of the most expensive Internet companies when looking at expectations of growth. Twitter rolls out new features The micro-blogging site has rapidly been rolling out new advertising features to make its platform even more attractive to marketers. Last week Twitter Inc completed the rollout of its targeting tool. It enables marketers to more accurately target Twitter users based on details other than just the basics. Marketers will also be able to use browsing details and other information to more accurately target their ads. Will Twitter grow into its valuation? The main reason investors may be pushing shares of Twitter Inc ify.valuewalk.com="" /> higher today is because they���re starting to believe the company will be able to grow into its valuation. However, at this point the company isn���t projected to even turn a profit until 2016. Currently Twitter shares trade at over 24 times the company���s projected 2014 revenue. This means Twitter is even more expensive than already-established social networks Facebook Inc , which has a P/E ratio of around 12, and LinkedIn Corp , which has a multiple of around 13 times its projected revenue. So far since its IPO, Twitter shares have increased more than 85%. At its IPO, the company���s shares sold for $26 each, but they quickly skyrocketed on the company���s opening day on the New York Stock Exchange. Analysts starting to like Twitter a bit more Leading up to its IPO, many analysts had positive reviews of Twitter Inc . They quickly applied Hold or Neutral ratings to the company, however, after shares skyrocketed on opening day. Some analysts, like those at Evercore, raised their target prices after Twitter unveiled the full rollout of Tailored Audiences. -By Michelle Jones