On Thursday, shares of Twitter hiked as it announced it would sell its MoPub advertising unit to AppLovin for $1.05 billion in cash.
The tech giant extended 1.99% or 1.22 points to $62.51 per share on the after-hours trading. Also, it followed its surge of 2.52% to 59.86 per share yesterday.
In addition, Twitter currently stands with a market capitalization of $48.91 billion and shares outstanding of $796.28 million.
Last June 2021, it reported a revenue of $4.45 billion and a net income of $65.65 million.
On Wednesday, the social networking firm disclosed the deal with AppLovin, a game developer and ad-tech company.
Accordingly, Twitter mentioned that the move would allow it to grow and develop its operated products.
Moreover, the sale is aligned with its goal of extending to $7.50 billion in revenue by 2023.
Also, its CEO Jack Dorsey explained that the transaction would strengthen the business in investing in products mainly intended for long-term growth.
MoPub, acquired by Twitter in 2013, is a marketing line that provides monetization solutions for app publishers and developers worldwide.
At present, it operates through 45,000 mobile apps and reaches 1.50 billion addressed users.
In 2020, the mobile ad platform contributed $350.00 million in revenue which is 5.90% of the total advertising revenue of the microblogging firm.
In line with this, Twitter mentioned that it would explain the financial impacts of the agreement on its third-quarter earnings on October 26.
Meanwhile, AppLovin produces virtual items and marketing tools that other game developers utilize for their app promotion.
Consequently, the software company climbed 9.48% or 7.30 points to $84.30 after the said announcement.
US Stocks Climbed as Twitter Hiked
Furthermore, the Nasdaq Composite index edged up 0.47% or 68.08 points to $14,501.91 per share.
Likewise, the benchmark S&P 500 rose 0.41% or 17.83 points to $4,363.55 per share.
Similarly, the Dow Jones Industrial Average index soared 0.30% or 102.32 points to $34,416.99 per share.
At the same time, US futures extended their gains as Twitter improved.
Subsequently, contracts in Nasdaq surged 0.73% or 108.50 points to $14,866.00 per share.
Then, the Dow futures inched up 0.43% or 147.00 points to $34,438.00 per share.
Consequently, the S&P futures increased 0.53% or 22.25 points to $4,376.00 per share.