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Shares of Twitter (TWTR) - Get Free Report were soaring more than 10%, to $16.16, in early afternoon trading Wednesday. The struggling social-media company just surprised investors with a top and bottom line beat, as well as higher-than-expected new DAUs (daily active users) for the 2017 first quarter. This represents a dramatic turnaround from the nearly 10% drop the stock saw after it released a disappointing 2016 fourth-quarter financial report in early February. 

For the 2017 first quarter, Twitter reported earnings of 11 cents per share, higher than analysts' expectations of 1 cent per share. Revenue dropped 8% year-over-year to $548 million, but beat Wall Street's estimates for $513.5 million. 

Twitter also managed to gain a stunning nine million new DAUs in the first quarter, its best since it added 14 million new members in the 2015 first quarter. The uptick in followers is partly a result of inactive users returning to the platform as well as the intense political climate in the U.S. sparking more interest in the platform, Twitter COO and CFO Anthony Noto explained during the earnings call

While the company's user growth looks encouraging, some investors say it can't make up for a declining revenue. "The problem with Twitter is while they have more users, they can't monetize," TheStreet's Jim Cramer said after Twitter's fourth-quarter results came out. "And it's not really their fault as much as you would think. There's just not a lot of ad dollars falling away from Facebook (FB) - Get Free Report and (Alphabet's) Google (GOOGL) - Get Free Report ."

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To see what analysts are saying about Twitter's surprise quarter, keep reading. 

Monness Crespi Hardt, James Cakmak (neutral) 

"Although our reservations on the stock remain, there are several encouraging signs from the quarter. On the user front, MAUs accelerated to post growth of 6.1% for a total of 329MM (10MM net sequential adds), while DAU advances accelerated for the fourth straight quarter, climbing 14%. ... Meanwhile, greater engagement led to 800MM hours of live-streaming video, thereby helping owned and operated revenue stabilize intra-quarter. ... We are unsure of the sustainability of this performance going forward and believe a fundamental rethinking of the revenue model should be on the table, by way of verifying all users and charging for distribution of content on the platform. There was a lot of bullish rhetoric on the call, but we still think this needs to evolve into a DAU and ARPU story. ... As we said, we give credit where credit's due, but at this time, we believe it's prudent to remain on the sidelines until a more cohesive strategy is in place and a track record longer than one quarter is set."

Pivotal Research Group, Brian Wieser (hold, $15 price target) 

"From our observations, there were many advertisers who spent money on Twitter because of its "bright, shiny object" status a few years ago. Much of that spending has evaporated to some degree, as many advertisers lacked a solid justification for why they spent what they spent or may have lacked a broader strategy around using Twitter in their campaigns. However, there are still many others who consider Twitter to be a unique, if supporting platform that helps those marketers meet their goals. Toward these ends, the company stated in its investor letter that 'while new deals represent a small portion of total expected revenue, we have signed a number of new advertising agreements with some of our largest advertiser partners.' ... Key risks around Twitter's business and its valuation include additional cash needs; further acquisitions in order to remain competitive in the advertising marketplace; a relatively unproven advertiser proposition; the prospects of wild swings in investor sentiment; difficulty scaling the business profitably; government regulations primarily related to privacy."