SAN FRANCISCO -- With investors hoping Facebook and Twitter can ramp up their advertising revenue, the companies' stocks surged Monday to record highs.
Facebook gained nearly 5% to $57.77, while Twitter shot up almost 8% to $64.54.
Facebook's stock price has more than doubled this year. Twitter has nearly doubled since its initial public offering early last month.
Investors are seizing on the momentum of the companies' ad revenue.
Research firm EMarketer says both companies will expand their share of the digital ad market.
By 2015, Facebook will snag 9%, up from 5.9% in 2012, EMarketer projects. Twitter will take 2.2%, up from 0.6%, the firm estimates.
Analysts are bullish on Facebook. Cantor Fitzgerald analyst Youssef Squali raised his price target to $65 as the company nearly doubled the percentage of advertising in users’ news feeds during the holiday season.
Twitter is making its own moves. And, in other Twitter news, co-founder Jack Dorsey, chief executive of mobile payments company Square, is joining the board of Walt Disney Co.
Copyright © 2015, Los Angeles Times