NEW YORK (TheStreet) --Twitter (TWTR) - Get Report posted better-than-expected 2016 third-quarter earnings results before the market open on Thursday. The social media giant reported earnings of 13 cents per share on revenue of $616 million. Topping Wall Street's expected earnings of 9 cents per share and $605.8 million of revenue.
Along with the reported earnings beat, the company also announced layoffs of about 9% of its workforce in a restructuring effort.
"I think basically what we've seen is Twitter go through the various stages of grieving for its business," Buzzfeed senior technology reporter Alex Kantrowitz said during Thursday morning's "Squawk Box" on CNBC.
He detailed the various grieving stages Twitter has endured since first making its initial public offering.
The first stage, denial, took place when the company first made the decision to go public and said it would be a tremendous business, despite critics saying the market was somewhat capped.
"Then there was anger, people saying where are the user numbers? Then it finally went into bargaining and it said okay maybe with Moments, the NFL deal, or other livestreams it could get this bump. But, the NFL has been going for a few weeks and it remains where it is," Kantrowitz explained.
Now he believes Twitter is headed towards the final stage, acceptance. The social media platform and investors will have to accept the fact that it will remain a company will 300 million monthly active users and makes a couple of billion dollars a year.
"But maybe that isn't the worst thing," Kantrowitz noted. "Think about the influence this company has had on the election and other major news events."
Shares of Twitter opened higher on Thursday.
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.
The team rates Twitter as a Hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, the team finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: TWTR