What to Look for When Twitter (TWTR) Posts Q2 Results
NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report are increasing 0.11% to $18.39 midday Monday ahead of the company's 2016 second quarter results, due out after tomorrow's market close.
Wall Street is expecting the San Francisco-based social media platform to post earnings of 10 cents per share on revenue of $606.8 million.
Last year, Twitter earned 7 cents per diluted share on revenue of $502.4 million.
Wedbush foresees an increase in revenue due to a seasonal rise in ad spending and more social media usage around the U.S. presidential election, MarketWatch noted.
But the firm expects flat sequential monthly user growth in the U.S. as it projects that recent changes made by Twitter will not add new users in the near-term.
Recently, the social media company revealed changes such as the ability to post longer videos and the addition of stickers to photos.
"We think that its service is too complicated and difficult to use for the average Internet user despite multiple changes," Wedbush wrote in a note cited by MarketWatch.
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Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
Among the areas that are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TWTR