Twitter Stock Drops Over 20% Massive Chaos!
One day after the biggest daily fall of its biggest rival, Facebook, Twitter disappointed investors by unveiling its second-quarter balance sheet. On Friday (27), Twitter’s shares fell 20.5% on the Nasdaq, stock index technology, New York Stock Exchange.
Investors reacted badly because the company lost users, despite having managed to reverse the loss of the same period last year.
The fall of Twitter shares helped US stocks close lower again on Friday. The Nasdaq index fell 1.46 percent to 7,737 points. Facebook shares, which tumbled nearly 20 percent on Thursday, fell 0.78 percent.
The social network registered 335 million monthly users in the second quarter, down from the 339 million expected by the market, and slightly lower than the 336 million people in the first quarter.
The company said the decision to penalize “badly-behaved” users this year paid off, although monthly use of the social network has fallen.
Like Facebook, Twitter has been under pressure from regulators in several countries to eliminate hate speech, abusive content and misinformation. It is also under pressure to better protect user data and increase transparency in spending on political advertising.
The results may widen concerns that Twitter does not have a clear strategy to increase usage and revenue together.
The loss of Twitter users overshadowed the robust results of the second quarter.
The company reported a record net profit of $ 100.1 million, reversing a loss of $ 116.5 million recorded in the same period last year. It was the third consecutive quarter and the third three-month period without prejudice.
Revenues of US $ 711 million, mainly advertising and 24% over last year, exceeded the average estimate of US $ 696 million.