Twitter Soars on Earnings Blowout: Tech Winners & Losers

NEW YORK (TheStreet) –– Twitter (TWTR) skyrocketed 21.1% to $46.72 after reporting second-quarter earnings that far exceeded analysts' expectations.

Twitter earned  an adjusted 2 cents per share on $312 million in revenues, a 124% revenue increase year-over-year. Analysts polled by Thomson Reuters expected Twitter to lose 1 cent per share on revenues of $283.07 million. Last quarter, Twitter’s flat earnings beat the consensus estimate of a 3 cent loss.

The social network ended the quarter with 271 average monthly active users (MAUs), a 24% increase year-over-year and a net increase of 16 million. Mobile MAUs, which accounted for 78% of total MAUs, increased 29% year-over-year to 211 million. Timeline views increased 15% year-over-year to 173 billion.

"Our strong financial and operating results for the second quarter show the continued momentum of our business," said CEO Dick Costolo in the press release. "We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter's appeal to an even broader audience."

Twitter’s full-year revenue guidance between $1.31 billion and $1.33 billion also handily beat analysts’ expectation of $1.27 billion.

Several analysts maintained their bullish positions on Twitter in response to the results. Deutsche Bank analyst Ross Sandler reiterated his "buy" rating and $60 price target, calling Twitter "one of our favorite long ideas, especially because "the 'MAU-Monkey' appears to be off Twitter's back." 

JPMorgan analyst Doug Anmuth was more cautious. He reiterated his "neutral" rating, but raised his price target to $54 from $42, citing user growth and improved monetization. "We are encouraged by Twitter's strong quarter and the company's momentum in both product experiences and advertising, but we need to see continued improvement in user growth and we believe the shares are closer to fair value given the ~28% move in the aftermarket to around $50," he wrote. 

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