Twitter stock rises after Morgan Stanley cheers revenue trends, 'platform scarcity'
Shares of Twitter Inc. are up 6.1% after an upgrade to equal-weight from underweight at Morgan Stanley. "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," Morgan Stanley analyst Brian Nowak wrote Tuesday. He believes that Twitter shares will continue to trade at a premium due to an expected acceleration in revenue this year as well as "platform scarcity." He wrote that Twitter is doing a better job of teaching advertisers how to effectively target and buy ads on the platform, which could help the company gain share of ad budgets. Twitter shares are up 110% over the past 12 months, while the S&P 500 has gained 15%.
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