Twitter Inc (NYSE: TWTR) is having an overwhelmingly strong day in the market today. However, the company didn’t release any news today. So, what’s the big deal? Why is it that shares of the stock are headed for the top? It has to do with an analyst upgrade. Today, we’ll talk about:
- The upgrade;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for with regard to TWTR ahead.
TWTR Is At The Center Of An Upgrade
As mentioned above, Twitter is having a strong day in the market today after news broke surrounding an analyst upgrade. Recently, Morgan Stanley upgraded the stock from an underweight rating to an equal-weight rating. During the upgrade, Morgan Stanley analyst Brian Nowak wrote that he believes TWTR will continue to trade at a premium as a result of acceleration in revenue this year. Here’s a key snippet from the message that Nowak had to offer:
While previously we were cautious about the durability of Twitter’s platform turnaround, more positive advertiser/agency conversations and (we believe) improving user growth make the risk/reward more compelling.
What We’re Seeing From The Stock
With the analyst upgrade in mind, it’s no surprise to see that Twitter is headed up in the market today. After all, investors tend to follow mainstream analysts when making their decisions as to how to best put their money to work. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:08), TWTR is trading at $30.55 per share after a gain of $1.97 per share (6.89%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TWTR. In particular, we’re interested in watching the company’s continued work to expand revenue through better educating its advertisers on how to get the best ROI within its system. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!