Twitter’s (TWTR) 2Q adjusted loss of $0.16 per share was higher than the analysts’ expectations of a break-even bottom-line. Moreover, its EPS compared unfavorably with the prior-year quarter’s earnings of $0.05 per share. Despite a dismal 2Q performance, its stock rose 4% on Thursday on a growing monetizable daily active user (mDAU) base.
The social networking company’s mDAU jumped 34% year-over-year to 186 million in 2Q.
The company’s revenues declined 19% year-over-year to $683 million, missing the Street estimates of $707.5 million. A 23% year-over-year decline in advertising revenues due to the pandemic remained a significant drag.
Twitter’s CEO Jack Dorsey said, “our product work is paying off, with tremendous growth in audience and engagement.” He further added that the last quarter was “the highest quarterly year-over-year growth rate we’ve delivered since we began reporting mDAU growth.”
Overall, analysts have a cautiously optimistic outlook on TWTR. Based on 5 Buys, 19 Holds, and 2 Sell, the analyst consensus rates TWTR a Hold. The average price target of $34.90, implies a potential downside of 9.2%. (See TWTR’s stock analysis on TipRanks).