Twitter shares up 6.5% on back of bullish advertiser forecast
Twitter shares have surged 6.5% on the back of an uncharacteristically positive outlook for its commercial prospects as advertisers gave the micro-blogging service their ‘best relative feedback’ in more than two years.
Twitter trades 6.5% higher on back of bullish advertiser forecast
Having struggled to gain traction amongst advertisers the service appears to have turned a corner as it rode a wave of renewed investor optimism fueled by user growth, changes to its ad delivery and a renewed focus on live content.
Triggering the bounce was Cleveland Research which believes it has found evidence that advertisers may be re-appraising their approach to the platform. It said: “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.”
Modelling these trends Cleveland now expects a 15% year-on-year fall in ad revenues for 2017 before rebounding by 12% in 2018.
Despite rising off the floor Twitter shares remain down by 30% from highs hit in October amidst a growing consensus that the worst may be over.
Speaking at Cannes Lions this week, Twitter chief Jack Dorsey said the business had learned from past mistakes and would now 'double down' on ad tech investment.