Option Millionaires

[uranium-pinto-beans]

$TWTR

Twitter Inc (NYSE: TWTR) was up more than 4 percent in after-hours trading after the company reported its second quarter results.
The social media empire reported Q2 EPS of $0.07 versus the Street estimate of $0.04 . Twitter expert Sean Udall said this was an "in-line" result. He praised the firm's revenue of $502.38 million , which was roughly $21 million higher than the Street estimate of $481.28 million .
"That's a huge beat," Udall told Benzinga. "[And] they actually guided the full-year number up a little bit."
Udall said it feels like Twitter might have "kitchen sinked the quarter."
"The bottom line is...they just flat-out crushed the current quarter," he continued. "I think Twitter is doing the beat and guide conservatively, but they did guide up the full year pretty nicely. I think it should be $40 and above. This stock has so much potential."
Udall anticipated a $100 share price at some point in the future.
"I could make the case the stock should be $42-$43 ," said Udall. "The stock's all the way down to $38 . I think it's gonna be hard to keep Twitter too much lower."
The stock continued to level off after Benzinga spoke with Udall. He concluded by saying that if this was any other company, it would be in a much better position.
"[But] Twitter has to do everything twice as well," he said.
Related Link: Should Twitter Hire Marissa Mayer As Its New CEO?
A 'Trend' For Twitter?
Global Equities Research analyst Trip Chowdhry does not believe that one quarter could be classified as a "trend" for Twitter.
"I think there's still a lot of work to be done on product innovation and monetization," Chowdhry told Benzinga. "I don't think their 'Buy' button is going to have any traction. I think it's a good property...it's very good for celebrities and political figures. But it's not an engagement platform."
Chowdhry believes that investors should approach Twitter with caution.
"One quarter is not a trend," he affirmed. "I think there will be more things to come before things improve from a fundamental point of view."
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Latest Ratings for TWTR
Date
Firm
Action
From
To
Jul 2015
Pivotal Research
Maintains

Buy
Jul 2015
Cowen & Company
Maintains

Market Perform
Jun 2015
MKM Partners
Downgrades
Buy
Neutral
View More Analyst Ratings for TWTR View the Latest Analyst Ratings
Write to [e-mail] with any questions about this content. Subscribe to Benzinga PRO: http://pro.benzinga.com
© 2015 Benzinga Newswires. Benzinga does not provide investment advice. All rights reserved.