A day after Facebook’s rout, Twitter plunges on weak user numbers
Twitter shares plunged in early trading as the social-media service reported weak user numbers, a day after Facebook suffered the biggest one-day loss in U.S. market history.
Twitter said monthly users dropped by 1 million, and the company said it could witness a continued reduction in users. Shares of Twitter declined more than 16 percent in trading before the opening bell.
The plunge mirrors Facebook’s historic wipeout, whichfrom the social-media giant after it reported disappointing results. Both companies are suffering from similar issues involving fake accounts, charges of information manipulation by governments and individuals and rising concern about their impact on society.
“We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviors that distort and distract from the public conversation,” CEO Jack Dorsey said in the company’s Friday earnings statement.
Twitter reported second-quarter net income of $100.1 million, after reporting a loss in the same period a year earlier. That marks the third consecutive profitable quarter for the company.
On a per-share basis, the San Francisco-based company said it had net income of 13 cents. Earnings, adjusted for one-time gains and costs, were 17 cents per share.
The results matched Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was also for earnings of 17 cents per share.
Revenue was $710.5 million in the period, which beat Street forecasts. Twelve analysts surveyed by Zacks expected $700 million.
Twitter shares have risen 79 percent since the beginning of the year. The stock has more than doubled in the last 12 months.
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