Jack's Twitter And Square See Shared Value Set New Highs

Morning Report: Amidst the market’s highs, two tech companies are doing well by sharing a leader. At least in terms of their recent valuation changes.

Square and Twitter share a CEO, making them an odd couple in the technology world. Helmed by Jack Dorsey, Square focuses on taking payments for a host of businesses around the country while Twitter is a global public messaging tool.

The companies don’t share much in terms of product surface area, but their shared leadership brings the two companies together. And notably, the firms have been on a tear in recent weeks, rising to a record, combined value – at least in the local time frame.

Twitter reported a surprisingly strong set of quarterly metrics last week, sending its shares skyrocketing. Investors seemed cheered by user growth and hints of impending GAAP profits. Shares of Twitter reached their highest levels since mid-2016.

Square’s story is simpler. Its share price has been on a tear since mid-2016, setting new, all-time highs in recent weeks. The result of both trends is a combined market cap that is at least a local maximum. (Twitter’s high value in its early life makes it difficult to say that the two firms are at an all-time share high, as when Twitter was worth the most Square wasn’t a public company yet.)

Here’s their shared market cap over time, via WolframAlpha:

Square’s earnings are ahead of it, meaning that the firm could disappoint, causing its share price to deflate. But for now, Square is near all-time highs and Twitter is near its 52-week highs. Not bad for two companies with just once CEO.

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