Last October we published a post titled “Dorsey’s Duo Not So Bad.”  At the time, Twitter CEO Jack Dorsey was taking heat due to the company’s poor stock performance, but we pointed out in the post that Dorsey’s other company — Square (SQ) — had been performing quite well.  Due to Square’s huge share price gain, “investing in Dorsey” by owning both TWTR and SQ would have resulted in triple-digit percentage gains over the past year.

Fast forward five months to today…not only has Square continued to rally, but Twitter — the social media stock that Wall Street loves to hate on — has been on fire!

Don’t look now, but shares of Twitter are now “in the black” versus their IPO price of $26 on 11/6/13.  As shown below, a surge since the start of 2018 capped by an 8% gain today has left TWTR shares up 28% versus their IPO price.

Along with TWTR’s 28% gain from its IPO, SQ is up 362% since going public in late 2015:

On a combined basis, Dorsey’s Duo of TWTR and SQ now have a market cap of $40.9 billion, which is up from less than $15 billion at the start of 2016.

Twitter is now up 110% year-over-year, while Square is up 187%.  Had you “invested in Dorsey” by buying the same amount of both companies, you’d be up 148.9%.  Not bad!

As Twitter (TWTR) has been rallying recently, its big brother in the social media space — Facebook (FB) — has stumbled a bit.  While Twitter is up 39% in 2018, Facebook (FB) is down 1.9% on the year, and it’s down 10.3% over the last 8 trading days.

Long-term Facebook (FB) shareholders still have a lot to be happy about of course.  When comparing performance versus IPO prices, FB is still up more than 10x as much as TWTR.  While the little blue bird is flying high right now, it still has a lot of catching up to do.

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