To fix reputation, Twitter, Facebook incur investor wrath

To fix reputation, Twitter, Facebook incur investor wrath

To fix reputation, Twitter, Facebook incur investor wrath

Twitter isn't doing great either, as the company's stock dropped 21% following the quarterly earnings report.

Just a day after a historic plunge in the share price of Facebook, which alarmed investors with a warning of slowing growth and rising costs, Twitter said that the total number of active users - people who log into the service every month - had fallen by 1m to 335m. But Chief Financial Office Ned Segal told analysts that the event, which carried into the third quarter, raked in less revenue in its second two weeks.

Twitter recently removed or suspended a number of accounts, which the firm said was one reason behind the fall in monthly users to 335 million in the second quarter. Its sales hit $711 million for the quarter, up 24% from the same period a year ago, and it posted its third consecutive profitable quarter.

"It got the Street off guard in terms of the magnitude of the effect it had on earnings", Ives said.

Social media companies have not had a good week in the stock market.

"What you're seeing is a market correction as the industry adjusts for increased operational expenses as governance and ethical business expectations have been raised globally", she said. He added that the company started using new tools to address new tools that address bad behavior and spam."er".

In this Wednesday, April 24, 2013, file photo, Twitter co-founder Jack Dorsey speaks at a campaign fundraiser, in NY.

"We are proud of the tangible improvements people are seeing on Twitter".

The company's stock dropped 20.5 per cent after it warned the number of users could fall further in coming months as it continued to crack down on hate, abuse and online trolls. That's good for real users - removing twice as many spam accounts as it did a year ago reduced related complaints by almost a third between March and May. Twitter reports in USA dollars.

Twitter's relations with advertisers have been strained by concerns about phony accounts bought by users to boost their following.

Dorsey told analysts that Twitter had a "solid quarter" and suggested that daily usage was a better measure of its future growth.

Twitter again touted daily active user growth.

Company executives had acknowledged their new tactics against suspicious accounts but said the impact on active users was likely to be limited because most of the suspended accounts were either not active or newly created.

But some say Twitter's unique position as a real-time network that allows users to follow news and events will eventually pay off. Now, Twitter said Friday, it's struggling to maintain users users too, a day after Facebook said it saw a user drop in Europe.

In April, Twitter said it inked more than 30 deals for live and original programming, including with Walt Disney Co (DIS.N) for a Twitter-only version of ESPN's SportsCenter.

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