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The Ratings Game: Square shares soar after revenue beats estimates, but analysts urge caution

Shares of Square Inc. shot up 19% in premarket trade Thursday, but analysts were urging investors to be cautious.

On Wednesday, the company beat second-quarter revenue expectations and raised its annual guidance. The positive news for Square SQ, +15.61%was in almost direct opposition to Twitter — both companies are helmed by Jack Dorsey — which recently reported its worst-ever revenue growth.

Still, in the past three months, Square stock has lost 22%, while Twitter has gained 19%. The S&P SPX, +0.08% has gained 5.5%.

Here’s what analysts said:

—SunTrust Robinson Humphrey analysts say second-quarter earnings show that Square can grow and should “embolden” the bullish investors.

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