Many Analysts Optimistic About Twitter Despite Poor Quarter

Twitter Earnings Better Than Expected, But Big Layoffs Loom

Twitter reported disappointing results at its earnings call on Tuesday, with revenue actually better than expected, but growth in monthly active users sluggish. Nonetheless, a number of analysts remain optimistic about the social media site, seeing it as a project in transition.

Twitter’s number of MAUs, as monthly active users are abbreviated, rose from 316 million to 320 million in the September quarter – much lower than analysts’ expectations of 324 million. However, Business Insider has pointed out that several analysts have used research notes to express enthusiasm about Twitter’s future.

For example, Pacific Crest’s Evan Wilson and Tyler Parker have said that recently appointed CEO Jack Dorsey “has the freedom and vested interest to fix the product problem at this company”. Meanwhile, Goldman Sachs has cited its belief that “the accelerated pace of product innovation, including the recent launch of Moments, should improve ease of use and expand the audience.”

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