Tuesday continued the market's upward momentum, with major benchmarks bouncing back from losses early in the morning session to end modestly higher. The Dow picked up about 39 points, and other stock indexes climbed between 0.25% and 0.5% as market participants appreciated the restoration of calmer trading conditions. With economic and geopolitical considerations all having found a rough equilibrium, many investors are focusing more closely on individual stocks, some of which enjoyed considerable gains today. Twitter (NYSE: TWTR), AmerisourceBergen (NYSE: ABC), and Chegg (NYSE: CHGG) were among the best performers. Below, we'll look more closely at these stocks to tell you why they did so well.
Twitter keeps singing a happy song
Shares of Twitter rose another 8%, continuing a positive trend that has persisted throughout much of the past several months. Most investors in the social media giant focused on the company's quarterly financial release late last week, which featured huge increases in ad engagement and earnings per share. Even though user growth still remains subdued, guidance for the near future points toward expanded demand for advertising and a greater emphasis on data and enterprise solutions. With the stock having doubled just since September, it'll be important for Twitter to follow through on investor expectations in order to hold onto its gains.
Image source: Twitter.
For AmerisourceBergen, gains are as easy as A-B-C
AmerisourceBergen stock climbed 9% after investors reacted to reports that Walgreens Boots Alliance (NASDAQ: WBA) might be looking to purchase the drug distribution giant. Many industry followers have argued that given the competitive pressure from an e-commerce-led consortium seeking to make monumental changes to healthcare, traditional players in the industry would have to make moves to consolidate their operations and fight. A Walgreens-Amerisource deal would definitely qualify in that category, bringing together two giants that already have considerable power to negotiate and control costs. Yet some still fear that even a combination between two industry behemoths won't be enough to hold innovation at bay without further strategic moves, and so it'll be interesting to see whether this speculation results in an actual deal.
Chegg hits the e-books
Finally, shares of Chegg soared 17%. The educational specialist reported fourth-quarter and full-year 2017 financial results that included dramatic jumps in revenue, subscriber counts, and content views, reflecting a successful transition to a digital strategy for the former textbook specialist. Chegg celebrated a number of milestones over the past year, including acquisitions to broaden subject coverage and go beyond educational materials toward career services and alternative learning methods. If connected learning keeps gaining traction, then Chegg will find itself positioned well for what lies ahead for the industry.
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