Twitter's Stock Might Be 'Stuck For The Next Quarter Or Two'

Twitter Inc (NYSE: TWTR) is up nearly 4 percent on Tuesday, indicating that some investors might have hope for the company's second quarter results. Analysts and other industry watchers aren't nearly as optimistic.

"The stock is so hated, it's probably stuck for the next quarter or two," Twitter expert Sean Udall told Benzinga. "[Or] until they can produce a strong print or they can demonstrate traction from the Google and/or Apple Spotlight Search deals."

Rob Enderle, principal analyst at Enderle Group, told Benzinga that Twitter "remains a troubled company."

"Moving to profit has been elusive to them and I haven't seen anything that fixes that," said Enderle. "Their popularity seems to be holding reasonably well. It's the revenue generation that's the question. I'm not expecting to see good news out of Twitter because I'm not sure they fixed the problem yet. I'm not even sure they can fix the problem, which is the bigger issue.

"Twitter is worth watching to see if they made any headway whatsoever with regard to profitability."

Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, is also concerned about Twitter's results.

"I'm not expecting good news from them," Moorhead told Benzinga. "There's two ways you want to send out a CEO. One way is with a bang and the other way is with a whimper. I think this will be a whimper. They'll get out a lot of their bad news upon the exit of the CEO.

"I would expect write downs [and] any bad news they'll cram into one quarter to get that out of their system. [This could] also set up maybe the next quarter or quarter after that as a more positive quarter with a new CEO to give that CEO much better ground to stand on."

Related Link: Should Twitter Hire Marissa Mayer As Its New CEO?

'Ability To Succeed'

Aaron Klein, co-founder and CEO of Riskalyze, is trying to stay positive during Twitter's toughest period yet.

"I am long Twitter," Klein told Benzinga. "I think that Twitter is a product that has the ability to succeed despite any management challenges that may be thrown in its path. I think that Dick Costolo was an amazing CEO. He took it from zero in revenue to billions of dollars. I am an avid user of the product. I love it. I'm personally long Twitter in my own account."

Udall is a Twitter bull as well, but he does not expect investors to react positively to the Q2 results, as noted above.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.