NEW YORK (TheStreet) -- Struggling social media platform Twitter (TWTR) - Get Report showed that it was taking "a good first step in the right direction" with its 2016 third quarter earnings and revenue beat, Mizho Securities' Neil Doshi said on CNBC's "Squawk Alley" on Thursday morning. The firm has an "underweight" rating and $16 price target on the stock. 

"But this is just one quarter and one quarter doesn't make a trend. We're still fairly skeptical that they can really turn this business around," he cautioned. 

Before today's opening bell, Twitter reported earnings of 13 cents per share, above estimates of 9 cents per share. Revenue came in at $616 million vs. expectations of $605.8 million. 

Twitter is losing marketers as advertisers flock to sites with more users like Facebook (FB) and Instagram, or the rising video sharing app Snapchat, Doshi noted. 

"We've talked to a number of agencies and they've become quite lukewarm on Twitter. Some have definitely pulled some money away from Twitter as well," he said. 

In order to grow its advertising base, Twitter is going to have to show MAU and DAU growth, as well as better user engagement, Doshi noted. 

Twitter is at a "very critical juncture" because if it can't show growth from its live streaming initiatives, then the stock could "fall meaningfully from these levels," Doshi warned. 

The live-streaming push could be a way for Twitter to grab onto more advertisers, but live vido is still "pretty nascent" so it will take time, he added. 

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Shares of Twitter were higher in early afternoon trading on Thursday. 

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Separately, 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.

TheStreet Ratings team rates Twitter as a Hold with a ratings score of C-. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

You can view the full analysis from the report here: TWTR

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