Twitter Inc TWTR shares soared on Wednesday following bullish statements from Cleveland Research.
The note stated Twitter has started to receive improved feedback on both its strategy and execution and its CY 2017 budget allocation is still muted.
Cleveland Research also received positive “constructive feedback” from Twitter’s advertisers regarding the company’s current strategy. However, the research firm still expects Twitter to struggle to grow its advertising revenue, and that its budget remains flat year over year in 2017.
Related Link: Analyst: Twitter Is A $10 Stock, Social Media Is An 'Anti-Trend'
Does This Note Finally Shed A Positive Light On Twitter?
Over the past couple years, analysts have constantly discussed Twitter’s poor strategy. MoffettNathanson analyst Michael Nathanson noted, “Hope is not a strategy” for Twitter.
Additionally, in 2016, Stifel analyst Scott Devitt downgraded Twitter to Sell and said, "Twitter is a product that has never fully developed into a sustainable public company due to either poor strategy, poor execution, or that it was never destined to be one."
Overall, the Cleveland Research note provides a glimmer of hope for Twitter investors. The stock was trading up over 5.5 percent at $17.83 during Wednesday's session.
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