Twitter Rallies After Earnings Beat, Reports 316M Monthly Active Users

Keep an eye on shares of Twitter (TWTR) in Wednesday’s trading session. The micro-blogging site released its second-quarter financial results after the closing bell Tuesday.
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Keep an eye on shares of Twitter (TWTR) in Wednesday’s trading session. The micro-blogging site released its second-quarter financial results after the closing bell Tuesday. For the second quarter, the company posted a profit of $0.07 a share to top Wall Street estimates by 3 cents. Twitter raked in revenue of $502 million, also above analysts' expectations, according to Thomson Reuters data. In the same period of last year, the company earned $0.02 per share on sales of $312 million. The company also surpassed analysts’ estimates for its key metric for the quarter. 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. Shares of Twitter have fallen by roughly 4% in the past 52 week period. 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. Twitter shares finished the regular session in the green on heavy volume, and rallied further to the upside by nearly 7% in after-hours trading following the earnings release. TheStreet's Kurumi Fukushima reports in New York.