LinkedIn buyout, SoundCloud investment lift Twitter shares

Employees of Japanese toy company Tomy dressed as Twitter birds work at their desks during the company's Halloween Day event at the company headquarters in Tokyo on October 27, 2015.
Yoshikazu Tsuno | AFP | Getty Images

Shares of Twitter gained nearly 4 percent Wednesday, still riding on the momentum of LinkedIn being bought by Microsoft.

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.