Is Twitter Taking Flight on Wall Street?

The social media giant's stock shows signs of life after weeks of sell-offs.
4:30 | 05/12/14

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Transcript for Is Twitter Taking Flight on Wall Street?
That's -- New York -- Walters goes in for Monday may twelfth as the -- stocks today. Another look at Twitter which suddenly showing some signs of new life after weeks of selloffs and battering by Wall Street fairs. So to help explain what is happening and why exactly is happening -- -- they want to bring in Rick -- from Yahoo! finance this Monday. Ric OK we've seen this recent dramatic freefall which we've talked about a couple times before so what happened to Twitter. But let that stop. -- partly because. People who -- -- on the inside they weren't allowed itself for several months following the IPO late last year. But they were finally allowed to -- so that was the expiration of the so called lock out -- a lot of people put their shares on the market. Simple supply and demand dynamic there are more supply the -- -- the price goes down. I went -- and actually went below thirty bucks. Four a little while after being as high as 73 dollars -- so. You know that led to lots of speculation I was Twitter over as a big growth stock. Is it just is it is -- glory days -- over for Twitter and now it's coming back it's back up about 6% today there was one one stock analysts said. He's pretty optimistic he thinks the stocks can appreciate your future -- that seems to have basically created a floor under the stock for now. Yet essential this is what you're -- -- Robert peck said this specifically. And certainly helping out Twitter -- that we -- Twitter is one of few platforms on the Internet Google Amazon FaceBook Clinton. That has a long runway in its core business platforms of the -- are unique assets that provide interesting option now -- he over time so. Because of that -- I want to take a look at how Twitter has performance put the chart if we can because that the rise. Not as dramatic but clearly -- stop that spiral fall. Right and I think what that analysts are saying is. Look this is that this is still a pretty good business is still gonna grow pretty rapidly mean that's a big question -- stocks like this is the company has the company groan about as much as it's gonna do or is -- growth going to slow and I think he's saying -- lot of growth here and they can make money from. Growing more as they take on more users so he's predicting the stock could go as high as I think he said 45 dollars within within a year which would be. Consider a look considerably up from where is -- about 34 dollar so once again Twitter looks like a might be a decent investment. The and the other thing is that essentially he is saying that this does not have to be as big as FaceBook right -- -- FaceBook kind of like. Set the benchmark for people out there that want to invest in some that was intangible that was obviously in a new realm and now Twitter according did to to -- -- -- It doesn't have to be that scale. Yet put putter obviously is not at Facebook's scale what he's using a percentage and that's one of the way and it has analysts -- looking at this Christmas because a little bit -- history and -- by the way. Is making money they're making a lot of money and they're doing it on mobile platforms which is pretty hard for a lot of other companies to do so FaceBook as a success story. And I think you know I think the Twitter got so beaten down. A lot of people were saying you know its oversold. This is the -- looking like them by so I think a lot of investors -- thinking maybe it's time to buy and I think what happened today is one and one analyst came around said it is a good time to buy and so people say yeah I was thinking that Taylor back. So we side nice rebound in the stock. And -- rebound in fact that is the if you look at its interest in because this revival isn't necessarily based on a single thing the company has bought. Or develop the site from today they announced there's a new mute function. On Twitter but I mean today's uptick basically on and on one man's recommendation -- are actually more out there. -- I haven't tested the new mute function myself get so I can't tell you that as any -- anything to do that I doubted obviously. You know I think this is if it's a very turbulent period for a lot of stocks when. That lock up period ends summer months after the public offering so I think where. Maybe don't look at it so much as just one day's worth of news for Twitter but look at it you know will see a pattern over the course of a month at some point will see. Basically what's been happening here is this the stock has been trying to find its bottom and I think it looks to have found itself. So when you take got -- all the usual things that go along with an IPO and this becomes a more mature stock. And traders more accustomed to what it's like in the normal market that's that's where what's going -- -- Twitter sort of normalizing itself. Investors peaked at a 140 characters or less regular from the finance Rick thank you so much evident Monday variances. And of course you give up the latest headlines right here and abcnews.com. If you've been watching this story stock. I'm -- Cutler in New York.

This transcript has been automatically generated and may not be 100% accurate.

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