Earnings Outlook: Twitter earnings: Will product changes pay off as stock soars?

Social-media companies aren’t all created equal in the eyes of investors, but the winners and losers seem to be switching places.

As Facebook Inc. FB, -1.08% has come under fire for its handling of data-privacy issues and political-advertising scandals, Twitter Inc. TWTR, +1.17% stock has thrived. Shares are up 31% this year, while Facebook has declined 5.7%. The love for Twitter mainly stems from a series of product improvements that investors believe are getting users to spend more time on the platform, as well as the idea that Twitter can benefit from changes Facebook is making to its news-feed algorithm.

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