Twitter Shares Soar On Q2 Earnings; Bank Of America Upgrades

Following the release of is second quarter earnings Tuesday, Twitter TWTR shares spiked ~38 percent to hit a high of $52.35.

The likely reasons for such an astonishing jump were a significant beat on both revenue ($312 million vs. $282.82 million) and EBITDA ($54 million vs. $30 million), as well as higher-than-expected third quarter and full-year guidance.

Early Wednesday morning and in response to the earnings report, Bank of America analyst Justin Post issued a report in which he upgraded shares of Twitter from Neutral to Buy and raised the price objective from $40 to $60.

Post wrote, "Twitter's as platform may enable much better user monetization than expected, and new ad formats are launching which we think can be very successful and drive additional upside."

He added, "We think growing app download activity could drive four quarters of upside results."

Post noted that the move up after-hours on Tuesday seemed "extreme" and was likely at least in part due to short covering. That being said, Post believes that 100 percent revenue growth over the next four quarters may be possible.

In response to the beat, Post has raised his revenue estimates for 2014-16 from $1.249 billion, $1.9798 billion and $2.8344 billion to $1.3684 billion, $2.3504 billion and $3.7236 billion, respectively. Likewise, he has raised his EPS estimates from $0.06, $0.21, and $0.46 to $0.09, $0.30, and $0.71, respectively.