Twitter Stocks Soar As Company Beats Estimates, Revenue Grows 124% in Q2
Twitter shares are up big Wednesday after the micro-blogging website beat Wall Street estimates for revenue.
Twitter's second quarter revenue rose 124 percent to $312 million from the second quarter of 2013.
"Surprise surprise, Twitter had a great quarter," said Debra Aho Williamson, an analyst with market research firm eMarketer.
"Nobody was expecting it. They really outperformed in just about every metric that we can see," she said. "They've answered a lot of questions."
Revenue was only expected to rise $283.4 million according to analysts, but the $312 million was a pleasant surprise to investors. It sent the stock soaring almost 40 percent in after hours trading Tuesday. After hitting the $52 per share mark Tuesday in after hours trading, Twitter is at 46.74 (up 21 percent) in mid-day trading Wednesday.
Earnings per share also exceeded expectations. Twitter was expected to report a loss of a penny per share. Instead they reported earnings of two cents per share.
"Our strong financial and operating results for the second quarter show the continued momentum of our business," Twitter CEO Dick Costolo said. "We remain focused on driving increased user growth and engagement."
Even more positive news came from Twitter as they reported gains of 16 million users for the second quarter. That brings the number of monthly active users to 271 millions.
Ad revenue increased by 129 percent year-over-year to a total of $277 million, mostly coming from mobile ads (81 percent).
"I can't find one thing that they didn't beat on. This was a very positive result for Twitter," Robert Luna of Surevest Wealth Management, who has a stake in the social media firm told CNBC. "There's a lot of room for expansion, a lot of room for multiple revenue sources. I think Twitter is a stock that you want to own as an investor right here."
Twitter is hinting at growing their app and website and making improvements, with an ambition to grow as big as Facebook.
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