Twitter posts strongest growth in monthly users in a year

Trump's constant tweeting isn't lifting Twitter's profit

Shares of Twitter surged in early trading Wednesday after beating Wall Street estimates with its first quarter results and posting larger growth in users. Some perspective: Facebook has 1.86 billion users.

This marks a somewhat encouraging turn for the social network, having reported a loss of $167 million for the last quarter of 2016.

In classic Twitter fashion, however, the rest of the company's quarterly news was much more of a glass-half-full, glass-half-empty kind of situation.

With its slogan "it's what's happening", Twitter has been trying to corner the market for real-time information, to be a place where people can go to find out what's going on in the world and talk about it with friends and strangers. Video was shared widely on Twitter, as were jokes and anger toward the airline. While it has cut its financial losses its decrease in revenue means progress has been slow, and the loss of its NFL Thursday night live-streaming deal to Amazon has most likely done it no favours in the content stakes.

That's why the recent loss of an National Football League deal to Amazon was an especially hard blow to Twitter.

It's also worth noting the company's use of the term "resurrected" users, which it has used before, but refers to accounts that have been dormant for more than 30 days.

Revenue: $548 million vs. $512 million expected, down from $595 million in the year-ago period. Indeed, it appeared as if Twitter was all but ready to give up but now, the company has received a godsend in form of a good quarter - finally! The site's average daily active usage grew 14 percent year over year. Twitter's advertising revenue fell 11% to $474m in the quarter, above the average analyst estimate of $442.7m, according to FactSet StreetAccount.

And in the wake of such setbacks, competition is growing.

Slow rise in the number of users and an inevitably slow business from ad inventory due to the sluggishly rising user count are expected to bring trouble to Twitter's revenues. Analysts had been looking for earnings of 2 cents per share and $517 million in revenue. The company said DAUs were up 14 percent in the quarter, an improvement from the 11 percent, 7 percent, and 3 percent increase it reported respectively in the previous three quarters. Just over half the hours were sports, 35 percent news and politics, and the remainder entertainment.

"Investor sentiment around Twitter will undoubtedly swing wildly around recent momentum in any given direction, making the stock itself riskier than the company in many ways".

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