Shares of Twitter (NYSE:TWTR) gained more than 5% on Wednesday after a new report suggested that the social media company’s advertising strategy is working well.
According to Cleveland Research, advertisers have given “more constructive” feedback on Twitter’s ad process, including its recent changes to ad delivery. The research firm also indicated that partners are encouraged by the site’s user growth and live content production.
“This is the best relative feedback in our TWTR research in 2+ years, suggesting some potential bottoming in fundamentals; we look for follow-through improvement in our research for turning more near-term positive,” the firm said, via CNBC.
Cleveland Research is now calling for Twitter’s ad revenue to fall 15% this year, but the firm is expecting a 12% gain in ad revenue next year.
After closing at $16.91 per share on Tuesday, TWTR gained 87 cents to close at $17.78 per share on Thursday. As we can see, the move brought Twitter shares above their 50-day moving average, although the stock has slumped for most of June and is down nearly 7% over the last four weeks.
Nevertheless, investor sentiment on Twitter has shifted throughout the year. After years of frustratingly sluggish user growth, Twitter added more users than analysts predicted last quarter, which helped the company post better-than-expected earnings figures.
Still, the stock remains a Zacks Rank #3 (Hold). For more on TWTR, check out our other recent coverage: Is Now the Time to Buy Twitter?
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks’ Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but chosen members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting today, and for the next month, you can follow all Zacks’ private buys and sells in real time. Our experts cover all kinds of trades: value, momentum, ETFs, stocks under $10, stocks that corporate insiders are buying up, and companies that are about to report positive earnings surprises. You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks’ secret trades>>
Twitter, Inc. (TWTR): Free Stock Analysis Report
Original post
Zacks Investment Research