Shares of social network platform Twitter (NYSE: TWTR) exploded higher on Monday, rising about 30%. The big move came as Tesla (NASDAQ: TSLA) and SpaceX founder Elon Musk revealed he had established a 9.2% stake in the company. Clearly, some investors believe that Elon Musk's interest in the tech stock is good news for its long-term potential. But instead of betting on the stock simply because Elon is buying shares, let's take a closer look at the company's fundamentals relative to its stock price to see if shares really do look attractive or not.
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In Twitter's fourth quarter, revenue grew 22% year over year. Management said in the company's Q4 letter to shareholders that this growth was helped by "ongoing revenue product improvements, solid sales execution, and a broad, continued increase in advertiser demand."
Source Fool.com