Shares of Twitter (TWTR) have been on fire this year, climbing almost 50% so far in 2017. Monday's 8% jump is surely helping matters.
So what's behind the move? Analysts at JPMorgan upgraded the stock to overweight and bumped their price target to $27 from $20, TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.
Twitter chief operating officer Anthony Noto said the company would generate four straight quarters of daily active user growth and that's exactly what the company has done, Cramer pointed out.
Now, JPMorgan analysts say the company's efforts in video and live-streaming along with changes to it user interface could lead to double-digit growth in daily active users for 2018. "If you want social media, it's Facebook (FB) or [Twitter]," Cramer reasoned, adding that he is not surprise Snap Inc. (SNAP) has lost momentum throughout 2017 after going public in the spring.
Don't forget about politics either, said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. Not only does President Donald Trump use Twitter frequently to engage with the public, but many political leaders in outside countries us the platform to connect with their audience.
It's no longer about a takeover for Twitter, it's about momentum, Cramer concluded.
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