“Twitter Inc. shares plunged the most in two years after the social media company said monthly users dropped by 1 million in the second quarter from the first and predicted further declines as it continues to fight against spam, fake accounts and malicious rhetoric,” Selina Wang reports for Bloomberg. “Monthly active users were 335 million, San Francisco-based Twitter said Friday in a statement. Though that measure was up 2.8 percent from a year earlier, the company expects monthly visitors to fall again in the current period. Twitter blamed the projected drop on intensified efforts to clean up the platform, stricter privacy rules in Europe and changes to the way its service is used through SMS messaging.”
“The market appeared unwilling to wait and see,” Wang reports. “The shares plummeted as much as 19 percent to $34.58, the biggest intraday decline since October 2016.”
“Twitter’s user woes are similar to those of Facebook Inc., which also has been plagued by manipulation, robot accounts and unrest about the growing influence of social media in the culture,” Wang reports. “The huge number of deletions have raised concerns among investors that Twitter — the favorite communications tool of U.S. President Donald Trump — can’t attract a more general audience to supplement the politicians, entertainers and journalists who are among its prime users. The company, however, said the vast majority of malicious accounts are inactive or caught before they become counted among active users.”
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MacDailyNews Take: In our quest to win The Understatement of the Week Award: This has been a bad week for social networking stocks.
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