Topeka Capital commented on Twitter TWTR Wednesday, highlighting the potential in ad revenue growth for the social media site.
The firm said, "From our checks we understand that while Twitter's ad products are newer, there is a lot of excitement from advertisers about Twitter as an ad platform, and more ad budgets are flowing towards Twitter.
"In addition, as with Facebook ($2.87, Buy), there is a big push towards direct response advertising, and most see mobile app installs as a huge monetization opportunity for Twitter."
Topeka Capital concluded its comment by saying, "Twitter's ad partners we speak with expect Twitter's ad revenue growth to remain strong over the next several quarters, based on feedback from their clients, and the level of interest towards allocating more budgets towards Twitter. We view this as a positive indicator of Twitter's ability to increase its monetization level and close the monetization gap on a per user basis with Facebook."
Twitter shares closed at $32.90, up 1.2 percent.
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