Twitter (NYSE:TWTR) was one of last week's biggest movers, moving 10.98% higher. It was a busy week for the reinvigorated social media platform. Twitter introduced a new ad campaign, inked another sports programming deal, and received a bullish analyst note.
The encouraging Wall Street nod was naturally the biggest catalyst. Cleveland Research is arguing that Twitter's fundamentals are starting to bottom out. The most recent relative feedback that it's been getting on Twitter's strategy and execution is the best that it has seen in more than two years of Twitter research.
Cleveland Research recognizes that there are near-term risks in Twitter. It sees opportunities for investors coming later this year and into next year. It's sticking to its neutral rating on the stock. However, it concedes that advertisers and content partners are encouraged by user growth and improvements in both the way it delivers ad and its live content offerings.
Twitter stock is no longer in Mr. Market's doghouse. Last week's rally is just the latest step up. Shares of Twitter are closing in on their third straight month of heady gains, trading 24% higher so far in the second quarter.
Cleveland Research is the latest analyst to no longer wax as bearish on Twitter, but it's not the only thing that went right last week. Twitter kicked off the week with a new ad campaign. The #SeeEverySide marketing salvo pushes out the message that Twitter allows everything from a concert to a sporting event to a developing news story to be seen from every side within the social hub. Companies roll out new ad campaigns all of the time, but this one wouldn't seem feasible if Twitter's popularity wasn't on the upswing.
The platform's gaining momentum. Twitter has posted four straight quarters of accelerating growth in daily active users, going from 3% to 5%, 7%, 11%, and 14%. Its latest quarter wasn't a stunner on an absolute basis, but it was better than what analysts were expecting.
Twitter may not be the social broadcasting tool of choice for the younger set, but it is cultivating its audience. It is making the most of its audience breadth to make its own luck. It turned heads with NFL broadcasts last year, and it's not done. On Thursday, it announced a partnership with Seal Sport to live-stream soccer matches during the 2017 Arab Championship to its users worldwide. The new association is Twitter's first live sports streaming deal with a partner in the Middle East and North Africa. Twitter's a globetrotting darling again, and investors are starting to notice.