Social media companies continue to get slaughtered on Wall Street

The Latest Twitter's stock plunges on weak user numbers

Twitter plunges 13.6% on monthly user drop

As it began to crack down on spammy and inactive accounts, Twitter on Friday reported a drop of 1 million users in the second quarter of 2018 - with monthly active user count going down from 336 million in the last quarter to 335 million. Allegations of Russian meddling within the 2016 US election by spreading deceptive or divisive content material over social media have made the difficulty of bettering management over accounts and content material vital for Twitter.

Social media researchers for years had complained about the prevalence of bots - automated accounts managed by people seeking to shape online discourse - on Twitter, accusing the company of playing down the problem and not doing enough to curtail their influence. Twitter also recorded increases in its data licensing and other revenue churning businesses which stood at about 29 percent between years. However, in the second quarter, revenue rose 42% to $13.2 billion.

The World Cup brought in $30 million of revenue in the quarter.

The combined impact of two leading tech companies stumbling in the same week could make investors wary of an industry whose growth has been key to the economy and stock market for years.

The Twitter earnings report, released before Friday's opening bell, gave a third-quarter outlook that was below forecasts, due to a loss of users in the second quarter.

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The drop for the micro-blogging service's shares came a day after rival, and other significant social media player, Facebook Inc., saw a post-earnings massacre, with their stocks tanking at almost 19 percent on Thursday. The Motley Fool owns shares of and recommends Twitter.

Twitter executives answered questions on the earnings name by saying the steps to enhance day by day person and advertiser expertise could be a long-term enhance for the corporate, and that there had been no income hit.

Announcing Q2 results, the company reported slightly better than expected revenues of $711 million and mostly in-line earnings of $0.17 per share. "We believe that Twitter's value as a daily service is enhanced when the conversation on the platform is healthier and people feel safe freely expressing themselves". The company does not disclose daily users.

The total of suspended Twitter accounts in May and June stand at 70 million, according to the Washington Post. In fact, they claimed that the monthly numbers for its users could easily fall to "mid-single-digit millions" in the period of third quarter reporting. The issue, Twitter said, probably stemmed from its systems detecting co-ordinated behaviour by communities seeking to boost each other's presence on the platform, which caused the names not to appear in the auto-suggested search. This sequential decline marks a stark change from the six million monthly active users Twitter added in its first quarter.

Twitter, like greater rival Fb has been below strain from regulators in a number of nations to weed out hate speech, abusive content material and misinformation, higher defend person knowledge and enhance transparency on political advert spending.

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