Shares of Twitter, Inc. (TWTR) are higher by nearly 7% in early morning trading on Thursday after the microblogging site confirmed plans to start showing ads to people who weren’t logged in. Twitter said that the ads shown to logged out users will be in the form of promoted Tweets and that the move is a test.
More than 500 million people visit Twitter each month without logging in, much bigger than the 320 million total monthly users Twitter most recently reported. Twitter said the test will begin with select advertisers in the U.S., U.K., Japan and Australia, with plans to expand geographically in the future.
“What we’re launching is a way for marketers to target more of Twitter’s total audience than they’ve ever had before,” said in a statement Adam Bain, Twitter’s chief operating officer.
After rising to a $26.14 intraday high TWTR shares recently traded at $25.97. The rise in value is certainly a positive development, but it comes after months of a steady downtrend for shares in Twitter stock.
TWTR shares have declined 10.26% in the last 4 weeks and 12.27% in the past three months. Over the past 5 trading sessions the stock has lost 4.29%.
The $17.61 billion market cap San Francisco, Calif.-based company is down 34.39% year-over-year, compared with a 0.60% gain in the S&P 500.
TWTR has a 52-week range of $21.01 to $53.49.