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Microsoft announced Monday it was buying professional social media platform LinkedIn for $26.2 billion, sparking talk about the possibility of Twitter being acquired by another company.
Twitter also had positive news Tuesday, after Recode reported the social media company had invested about $70 million in SoundCloud.
After a year of negative headlines about the falling stock and executive turnover, investors likely also took the SoundCloud news as a sign the company is still at work to make the product better.
That said, Twitter's stock remained down nearly 54 percent over the past year, despite Wednesday's gains.
TWTR 12-month chartSource: FactSet
—CNBC's John Melloy contributed to this report.