Twitter shares hammered, as bad week in social media business gets worse

Evan Spiegel

The number of monthly active users dropped to 335 million in the quarter, a decrease of more than 3 million in the quarter.

User rates have always been more of a struggle for Twitter, and investors are anxious that the company can't grow its advertising business without a larger audience.

Twitter's stock plunged Friday after it reported a decline in its monthly users and warned that the number could fall further in the coming months.

"They're cleaning up a lot of MAUs that are not good or real", said Richard Greenfield, an analyst at BTIG, referring to monthly active users.

"Everyone knew that Twitter was full of fake accounts - why their removal should be impacting the share price in this way is unclear - investors may be better advised to keep a check on earnings and revenue growth instead".

It posted its third consecutive quarter of profits.

Facebook heading for its worst trading day ever
Facebook is the largest social media company in the world, with Twitter the second-largest behind what Mark Zuckerberg created. The erosion in the value of Facebook as it is perceived on Wall Street involves some staggering numbers.

Mr Dorsey said in a statement that daily users grew 11% compared with a year ago, saying this showed the firm's measures were turning the service into a daily utility.

The user outlook came as Twitter reported higher-than-expected revenue thanks to the FIFA World Cup, video ads and booming global ad revenue. The company is increasing planned capital expenditure and will continue to spend more on getting rid of bad users.

Twitter has focused on safeguarding the service in recent months amid scrutiny of its role in spreading fake news and election meddling as well as the broader data privacy backlash hitting the tech industry. Financial analysts had estimated the revenue to come in at US$698 million.

Twitter turned in its third straight quarter of profitability for Q2 of 2018, beating Wall Street expectations for revenue and earnings.

Revenue of $711 million, mostly from advertising and up 24 percent from previous year, exceeded the average estimate of $696 million among analyst research aggregated by Thomson Reuters.

"Our second quarter results reflect the work we're doing to ensure more people get value from Twitter every day", he said.

Facebook's value falls $148 billion after Q2 earnings call
Before the results were announced , Facebook's shares had closed in NY at $217.50, a record high, and had gained 23% this year. Facebook said mobile made up 91 per cent of ad revenue in the recent period, compared with about 87 per cent a year earlier.

Twitter's losses followed "Facebook Thursday" - a catastrophic day in the history of Facebook. Adjusted earnings were 17 cents a share.

The drop in Twitter's share price comes a day after Facebook's shares fell 19% when it revealed it had lost 3 million users in Europe since the Cambridge Analytica data breach scandal and the introduction of strict European Union privacy laws.

The company saw strong gains in advertising, with revenue up 23% year on year to $US601 million.

The new capital expenditures forecast is for between $450 million and $500 million, up from $375 million to $450 million, as Twitter expands and upgrades the computer infrastructure underlying its service.

"We are proud of the tangible improvements people are seeing on Twitter", the company wrote in a letter to investors. Markets outside the United States grew 44% year on year to $US344 million.

Kim Jong Un says soldiers' diets should be improved
Trump's original demand: a quick, complete, verifiable and irreversible end to the North's nuclear weapons and missile programs. The North has sent mixed signals on its readiness to give up its nuclear programs, and Mr.

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