Twitter Stocks Falling
By the looks of it, social media companies did not have a favorable week in the stock market. Recently, Twitter shares fell by 20 percent on Friday. According to the latest financial release compiled by Twitter, the company announced that it had lost users. A drop of one million has been recorded as the number of monthly Twitter users dropped from 336 million to 335 million.
Twitter’s revenue went up by 24% this year, and a profit of $100 million was recorded. But despite all this, the company’s shares in the stock market went down. Investors do not seem very happy with the current situation. And Twitter is actively investigating further. It has removed millions of fake followers from people’s accounts. Suspicious user accounts, fake profiles or any account that violates the company’s anti-spam policy is being deleted.
For a long period of time, Twitter has been accused of allowing its users to share hateful, violent and racist language. This has been very true with people almost crossing their limits with anybody – be it fellow people, celebrities or President Trump. As per NPR reports, Twitter along with Facebook is considered to be a tool for Russian influence. By deleting fake accounts, and monitoring user profiles, the company aims to restore public trust in Twitter. The company acknowledged this in the latest financial report released on Friday. But it added that this was done to increase future growth and make the platform more user-friendly.
The real reason for investors to panic remains that these deleted accounts are not counted in the company’s user metrics. So it has nothing to do with the decline in user growth. Twitter’s chief financial officer, Ned Segal himself announced this on Twitter.
Some clarifications: most accounts we remove are not included in our reported metrics as they have not been active on the platform for 30 days or more, or we catch them at sign up and they are never counted. https://t.co/nRIGE9EMcf
— Ned Segal (@nedsegal) July 9, 2018
It seems that Twitter is not the only social media platform that has seen falling stocks this week. Twitter’s news came out right after Facebook’s stock market went down by $100 billion in value. Facebook’s situation was similar to that of Twitter too. The company’s profits increased by a third, but shares were falling. Facebook has also predicted that its revenue growth will slow down in the coming year.
Social media companies have always been reliable drivers of stock market growth in the past. But looks like trends are changing. Investors are getting worried about the situations and are coming up with strategies to monitor social media sites to regulate them. Internet has become more complex than it ever was. Once you sign up for these social media sites, little privacy remains for you. People are becoming more violent, jokes are made more personally offensive and tolerance levels are low. Consequently, harassment and abuse through these sites is promoted. Many people suffer from depression which even converts into suicide at many instances. Cyber bullying is more common than it ever was. And let’s attribute the credits to these privacy-invading social media sites. To restore peace in life, more and more people are opting for controlling their usage or dropping out of these platforms. Even celebrities like Ariana Grande and Pete Davidson resort to taking a break from social media. So, definitely platforms like Twitter and Facebook will suffer through this.