The unconfirmed chatter about News Corp’s supposed interest in Twitter, which surfaced on the social service and Stocktwits earlier Wednesday, whipsawed Twitter’s stock price in early-afternoon trading amid a decline in the broader market.
Twitter shares shot up 14% just before 2 p.m. ET, to $19.04 per share, and then declined after News Corp denied the takeover rumors. The company’s stock closed at $17.38 per share, up 4.1% for the day, after shares hit an all-time low of $15.48 in morning trading.
On Tuesday, the company’s stock fell after Twitter experienced service outages worldwide, closing down 7%.
Twitter, following its IPO in November 2013, hit an all-time high of $69 per share in January 2014 and has been on a downward trajectory since last April. The company has been struggling to show Wall Street that it can grow its user base, with founder Jack Dorsey stepping in last summer as CEO.