Twitter Inc TWTR 0.74% dropped a bombshell on Wall Street when it announced its Q2 earnings and revealed user growth numbers that fell significantly below consensus expectations. Despite beating consensus top-line and bottom-line numbers, the user number disappointment sent Twitter shares plunging more than 15 percent on Wednesday, and it had Wall Street analysts scrambling to update their outlooks for Twitter’s future.
Some analysts are now taking a very cautious approach to Twitter, while others have not changed their positive outlooks a single bit. Here’s a summary of what Wall Street has to say about Twitter’s quarter.
Morgan Stanley
Analyst Brian Nowak is now “wary” of Twitter after the company’s addition of two million monthly active users (MAUs) in Q2 well woefully short of the firm’s projections of 6.5 million additions.
Brean Capital
Despite a Buy rating on the stock and a $47 price target prior to earnings, analyst Sarah Hindlian believes that the MAU growth struggles “should have been widely expected” and “may continue to weigh until MAU growth improves.”
Jefferies
Analyst Brian Pitz sees Twitter’s announcement that it “does not expect to see sustained, meaningful growth in MAUs for a considerable period of time” as a “near term challenge” for the company, and the firm lowered its price target for the Buy-rated stock from $60 to $56.
JMP Securities
Analyst Ronald Josey is…
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