NEW YORK (TheStreet) -- Shares of Twitter Inc (TWTR) - Get Report were up 3.04% to $37.67 in after-hours trading Tuesday, following the micro-blogging site's better than expected fiscal second quarter earnings release.
TheStreet's Jack Mohr of the Action Alerts PLUS Charitable Trust Portfolio says, "Results look promising against extremely low expectations. Very low hurdle for the company heading into the quarter, and what matters more is what they say on the call since their actual beat was not heroic (although it was solid)."
"A lot of new users appear to be non-core, SMS users rather than actual app or site, but regardless still encouraging," Mohr added.
In its latest quarter, the company earned 7 cents per share on revenue of $502 million.
Wall Street estimates called for a profit of 4 cents a share on sales of $481.13 million, according to analysts polled by Thomson Reuters.
Average monthly active users, a key measures of growth, came in at 316 million in the quarter, compared to the 310 million analysts were expecting, according to CNBC.
Shares of Twitter have fallen by roughly 4% in the past 52 week period.
Twitter stock closed at $36.56 in Tuesday's regular trading session.
San Francisco-based Twitter is a global platform for public self-expression and conversation in real time, where any user can create a tweet and any user can follow other users.
The company generates its advertising revenue primarily from the sale of its three promoted products which include promoted tweets, promoted accounts and promoted trends.
Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a SELL. This is driven by some concerns, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: TWTR Ratings Report