Investing.com - The focus in Twitter’s June quarter report on Thursday before the market opens will be on user growth.
(NYSE:Twitter) posted a 14% year-on-year rise in daily active usage in the first quarter. Average monthly users were up 6% at 328 million.
Twitter is expected to report earnings per share in the second quarter of $0.05 on revenues of $536.6 million, compared with EPS of $0.11 in the prior quarter on revenues of $548 million.
Twitter’s share price is up 26% since its first quarter earnings report, touching the $20 mark and outperforming the S&P information technology index.
"People are willing to give them the benefit of the doubt if they start to grow again," Reuters quoted Wedbush Securities analyst Michael Pachter as saying.
Analysts pointed to positive signs such as co-founder and CEO Jack Dorsey buying shares in Twitter.
"The double-digit rebound and the continued acceleration in users has really surprised investors," Reuters quoted BTIG Research analyst Richard Greenfield as saying.