Should Investors Chase Twitter’s Post-Earnings Rally?
Twitter's (NYSE: TWTR) stock recently popped after the social media company posted its second-quarter earnings. That reaction might seem surprising, since its top- and bottom-line growth broadly missed expectations.
Twitter's revenue fell 19% annually to $683.4 million, missing estimates by $24.5 million. That trickled down to an adjusted net loss of $126.6 million, or $0.16 per share, versus a profit of $37.1 million a year ago. Analysts had expected roughly break-even earnings per share.
However, Twitter's mDAUs (monetizable daily active users) grew 34% annually to 186 million, beating the consensus forecast by over 13 million mDAUs. That surprising growth in users sparked Twitter's post-earnings rally, but will those gains fade as investors digest its other problems?
Source Fool.com
