Twitter Moving On Two Analysts' Comments

Shares of Twitter TWTR have seen almost a two percent gap-up in pre-market trading after Cantor Fitzgerald upgraded the stock from Hold to Buy. This announcement comes after shares rose 10.69 percent Wednesday on a Nomura upgrade.

Twitter has much less of an addressable market than Facebook with just 255 million users, but Youssef Squali of Cantor Fitzgerald does not see this as an issue: “We think TWTR should show substantial revenue growth/margin expansion and generate meaningful returns to shareholders without having to mirror FB's model/approach its size.”

Related: Investors Bullish On Twitter After Upgrade At Nomura

The report further states, “More ad budgets are moving to social platforms and Twitter's gaining share, as evidenced by the $230M two-year deal with Omnicom announced this week.”

Squali commented that risks include Twitter’s inability to monetize and lower-than-expected user engagement.

Nomura analyst Anthony DiClemente, who upgraded the stock Wednesday, was on CNBC Thursday morning to discuss his commentary. DiClemente thinks the company has significant growth opportunity, stating that the “tailwind around mobile is tremendous,” user growth acceleration is likely and that international monetization is just starting.

DiClemente also touched on the role Twitter plays as a news provider. DiClemente thinks Twitter is replacing traditional outlets, a trend he indicated is very likely to continue.

Shares of Twitter were last trading at $34.18, up 13.59 percent for the week.