Twitter Inc (TWTR.N) shares surged 22 percent at the market open on Thursday after it reported its first quarterly profit and better-than-expected revenue, helped by ads that better targeted users and sales growth outside the United States.
Investors shrugged off zero growth in Twitter’s users from a quarter earlier, which the company blamed in part on seasonal weakness and its purge of fake and spam accounts.
Shares hit $35 in morning trading, their highest level since July 2015. Twitter debuted as a public company in 2013 at $26 a share.
“The revenue number was up year-over-year for the first time in several quarters, which is a good sign,” analyst Michael Pachter of Wedbush Securities said, adding that flat growth in monthly users from a quarter earlier was nonetheless a warning sign.
Twitter’s previous inability to turn a profit or turn out consistent revenue growth had confounded investors given the company’s ubiquitous presence in the media and popularity among celebrities, athletes and politicians such as U.S. President Donald Trump.