“Twitter Inc. failed to attract more monthly users in the second quarter, spooking investors looking for evidence that the company is on a sustainable long-term growth path,” Sarah Frier reports for Bloomberg. “The shares tumbled the most in nine months, even as quarterly revenue topped analysts’ projections.”

“A long-term turnaround depends on Twitter expanding its audience. That number stands at 328 million monthly active users — the same as in the prior quarter, the San Francisco-based company said in a statement Thursday,” Frier reports. “Revenue fell 4.7 percent and the company’s net loss also widened, affected by a $55 million writedown of the value of its investment in SoundCloud, the German music streaming service.”

“The shares fell as much as 14 percent percent to $16.85. It was the biggest intraday drop since October. They were up 6.3 percent in the 12 months through Wednesday,” Frier reports. “Twitter reported a net loss of $116.5 million, or 16 cents a share. Revenue dropped to $573.9 million, though that beat analysts’ average estimate of $537.2 million as the company drew more money from video advertising and its business selling data to third parties.”

“Twitter’s business troubles contrast with its increased profile in the political world, as U.S. President Donald Trump frequently uses the platform to reach the public in an unfiltered manner. Despite his daily fusillade of tweets, Trump hasn’t helped Twitter’s growth in its home country,” Frier reports. “Monthly active users in the U.S., Twitter’s most important advertising market, declined to 68 million from 70 million in the prior quarter. Chief Financial Officer Anthony Noto said Twitter doesn’t know why U.S. monthly active users slipped. ‘We don’t have data that will explain a causal impact’ of that shift, he said on a conference call.”

Read more in the full article here.

MacDailyNews Take: As we wrote last September:

Twitter is one of the very best places, if not the best, for breaking news. It’s got many other problems, of course (organization, priority, conversation coherence, rampant inanity, etc.), but it is good for breaking news… We’d love to see what Apple could do with Twitter in terms of usability. A vast, ready-made social network might be just the thing to teach Apple all they need to know about the subject, which isn’t much (see Ping and Connect, for two examples).

And, as we wrote back in February 2016:

Twitter should focus on TRENDS. Twitter Trends are the best place to get breaking news on earth. Twitter needs to tell everyone interested in news about Twitter Trends. Bang the everlasting sheet out of that one point. Users will discover what Twitter is on their own if you simply get them there via Trends.

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