Twitter stock slides 19% after fake-account purge, new rules in Europe

Investors pummeled Twitter Inc.’s stock in Friday trading, sending shares down 19%, as the company reported that user growth had turned negative, even as its quarterly results beat Wall Street expectations on the top and bottom lines.

Twitter shares TWTR, -19.85% were down 19% in afternoon trades. Before Friday’s losses, the stock had gained roughly 80% this year, while the S&P 500 index SPX, -0.72% has climbed 6.1%.

Twitter stock slides 19% after fake-account purge, new rules in Europe

First Facebook drops 19% and today Twitter drops 19%. It's a bad week for social media companies.

Twitter keeps reporting profits higher than expected, but the drop in users after purging millions of fake accounts caused the slide. They apparently also didn't renew their text messaging contracts.

But, on the earnings call with analysts, Segal said the decline in monthly active users of about 3 million was because of the company’s effort to clean up its platform, as well as a decision not to renew text-messaging contracts — Twitter, as a legacy of its earliest days, can be delivered via SMS instead of on the web — as well as the European Union’s General Data Protection Regulation, which went into effect during the quarter.

Hope nobody here is too invested in Twitter. Although, in my opinion, I think it'll eventually climb back up. Good luck in the markets, ATS.

Also, yesterday Trump threatened to launch a criminal investigation of Twitter over their shadowbanning and censorship of conservatives. That might have spooked investors.

a reply to: sine.nomine

Well damn, are we seeing a dot com style bubble burst?????


ETA, I did a thread on this awhile back where a Kardashian threatened to leave and the stock tanked. Who knows what it would take to kill the company long term. Not that I advocate it's death, just saying its a mental business model.

a reply to: AndyFromMichigan

Good point. This is also from the article:

Twitter’s “health initiatives” — the company’s jargon for its attempt to render the platform free of hate speech, fake accounts and election meddling by foreign powers — would be an ongoing cost for the social network to bear, according to Chief Executive Jack Dorsey.

I don't think people react well to any censorship.

The only thing that will get rid of Facebook and Twitter is whatever social media is next. The concept is so ingrained in people at this point it might as well be a brain implant. Like an implant without an implant.

We’re also about to see the first generation of people who have their lives from birth to death chronicled on social media. How weird it’ll be in the future to be able to look back over someones life with photos, videos, and personal messages. How long before someone makes an encyclopedia of people?

guess those put options on Twitter were looking pretty damn good huh??

Social media stocks-Oxymoron.

I hope twitter fails just like shambook.

a reply to: underwerks

You make me wonder how long it'll be before an AI is imprinted with all of those pics, images, and thoughts? Would you live forever as a ghost in the shell?

for those of you who don't follow this Qanon made this prediction a few days ago

a reply to: underwerks

How long before someone makes an encyclopedia of people?

What makes you think some hasn't done so already:

The Pentagon canceled its so-called LifeLog project, an ambitious effort to build a database tracking a person's entire existence.

a reply to: sine.nomine

Incur the wrath of The Donald at your own peril......he stabed them with a tweet.

Oh the irony of it all.

originally posted by: AndyFromMichigan
That might have spooked investors.

Investors is a bit of a wrong term nowadays. This is just a bunch of people cashing in their original stake. People buy shares in the hope they will make a killing. In the case of Twitter and Facebook, there's alot of faith in the fact that shares will hold their value considering the companies make sod-all, but have fantastic value.

originally posted by: toysforadults
for those of you who don't follow this Qanon made this prediction a few days ago

I followed it for awhile, but it got to be too much for me. I own a few shares in Twitter, and I actually considered selling them yesterday to reinvest more into another sector, but changed my mind. If I saw that in the Qster thread, it may have driven me to do it. Oh well. It's a tiny drop in the bucket of my overall portfolio.

a reply to: underwerks

people could have said the same about MySpace.

Jaden

Governing bodies have sought to regulate social media. The EU's privacy laws in particular have sent social media into a spiral. Not only that, but the EU is seeking to regulate social media for fake news, just like China.

a reply to: sine.nomine

This is major!!!! Will these 2 be the dominoes that kick off a big(ger) tech selloff on Monday? Rut row

Well certainly a lot of tech industry stocks are massively over-valued. But then so is the entire stock market.

originally posted by: sine.nomine

Investors pummeled Twitter Inc.’s stock in Friday trading, sending shares down 19%, as the company reported that user growth had turned negative, even as its quarterly results beat Wall Street expectations on the top and bottom lines.

Twitter shares TWTR, -19.85% were down 19% in afternoon trades. Before Friday’s losses, the stock had gained roughly 80% this year, while the S&P 500 index SPX, -0.72% has climbed 6.1%.

Twitter stock slides 19% after fake-account purge, new rules in Europe

First Facebook drops 19% and today Twitter drops 19%. It's a bad week for social media companies.

Twitter keeps reporting profits higher than expected, but the drop in users after purging millions of fake accounts caused the slide. They apparently also didn't renew their text messaging contracts.

But, on the earnings call with analysts, Segal said the decline in monthly active users of about 3 million was because of the company’s effort to clean up its platform, as well as a decision not to renew text-messaging contracts — Twitter, as a legacy of its earliest days, can be delivered via SMS instead of on the web — as well as the European Union’s General Data Protection Regulation, which went into effect during the quarter.

Hope nobody here is too invested in Twitter. Although, in my opinion, I think it'll eventually climb back up. Good luck in the markets, ATS.

FB...Twitter...who's next? I'm kinda leaning toward Google.

I looking for investors to build a site called "Titter."
Nothing but boobies.

a reply to: Vasa Croe

God I hope so...