Twitter’s Stocks Gains 30% on Tuesday after Impressive Results
After Twitter released its quarterly earnings, the stock price soared nearly 30% on Tuesday. Twitter has witnessed strong growth in its list of active users, which has raised its chances of doing well in the future as well. However, some analysts are still wary about the growth aspects of Twitter in the future.
CEO Dick Costolo claimed in a CNBC interview that the results of the second quarter are not attributable to the World Cup event, which began on June 12 and continued till July 13.
However, Eric Bleeker, analyst at the Motley Fool, said the sporting event has been a great help for the microblogging site. It is a big question whether or not user base can be sustained without global events.
As per estimates of market analysts, a rise of 10-15 percent was expected in shares of the company, but the company surpassed the expectations after recording 35% on Tuesday. Before the surge on Tuesday, Twitter has witnessed the loss of about 40% of its market value since the beginning of 2014.
The performance was good even in the US, which has halted the concerns related to Twitter's growth in the US, said Sterne Agee analyst Arvind Bhatia. "One would still have to say that the jury is still out. You have to look maybe at what happens in the next quarter and see if they can continue to have upside on the user growth", added Bhatia.
User base for Twitter has burgeoned to 271 million, but it is still behind Facebook Inc.'s 1.3 billion.
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