Twitter shares rise by 4% amid rumors regarding its acquisition
After rumors of acquisition of social network Twitter, the company stock gained nearly 4%. Earlier also, it was said that Twitter could be a target for acquisition. Some talked about the acquisition of the company by Google.
Twitter stock has gained over 46% for the year so far, moving slowly close to a 51-week high for the tech company.
On Tuesday, many shares of the company were trading hands on, and a volume of 30 million shares has been registered compared to the average of 18 million shares per day.
This year, there are options for growth of Twitter stock for April month. It has been suggested by the CBOE that Twitter is one of the firms whose options were increasing in volume in Tuesday market.
According to an investor, on Twitter's stock price there is a lot of interest in betting for April 17 this year, whereas there is open interest in 35,164 contracts betting Twitter's price.
Its options contracts are usually in range of 2,500 to 5,000 contracts per day. And it would make the April 17 the highest open interest in Twitter options since January this year.
When the news broke that search major Google could be acquiring the company, it also led to some debate. Twitter could assist Google in getting more real-time information, which will improve Google's offering for its visitors. And both the companies are already working with each other on that agreement.