Twitter jumped sharply on Tuesday after the social media company easily topped earnings and revenue expectations.
The firm posted earnings of 2 cents a share, ex-items, compared to a loss of 12 cents a share, ex-items, in the year-ago period. The company also reported a revenue of $312 million, an increase of 124 percent year-over-year. Shares popped following the earnings report. (Click here to track its shares following the report.)
"I can't find one thing that they didn't beat on. This was a very positive result for Twitter," said Robert Luna of Surevest Wealth Management, who has a stake in the social media firm. "There's a lot of room for expansion, a lot of room for multiple revenue sources. I think Twitter is a stock that you want to own as an investor right here."
Analysts had expected Twitter to report a loss of a penny a share on $283 million in revenue, according to a consensus estimate from Thomson Reuters.
Monthly average users grew 24 percent year-over-year to 271 million, as of June 30, 2014, the firm said in a release.
Ad revenue increased 129 percent year-over-year, to a total of $277 million, of which 81 percent came from mobile advertising.
Other social media companies such as Facebook and LinkedIn edged higher following the report. Chinese microblog Weibo jumped more than 7 percent.