Twitter Stock Plunges 21 Percent After Earnings Show Effects of Fake-Account Purge (marketwatch.com)

Twitter shares fell 21% on Friday as the company reported that user growth had turned negative, even as its quarterly results beat Wall Street expectations. The decline was even greater than Facebook's almost 19 percent plunge in shares after the social media giant reported disappointing results. MarketWatch reports: Twitter posted a profit for the third consecutive quarter, with its $134 million in net income equating to 13 cents a share. Adjusted per-share earnings came to 17 cents. The FactSet consensus estimate had been 16 cents. Twitter's revenue climbed 24% to $710.5 million to beat the FactSet consensus estimate by about $2 million. Even as executives talked about Twitter's bright future on the earnings calls, investors appeared to react to Twitter's slowing user growth, as its monthly user count went south, falling by 1 million to 355 million, as compared with the year's first quarter. The decline was expected after recent reports had the company purging about a million fake accounts a day.

Comments

And this is the result of so-called "investment"

[Puls4r]

The average person the street is not smart enough to understand that "investors" have not a damn thing to do with real performance. They'll see this and think that somehow twitter is not a profitable or sustaining company, despite the fact that their profits are good.

What we have is irresponsible profit-driven reporters who want short clips rather than explaining what this actually means.

And in the mean time, we have a bunch of idiots who are so absorbed with another idiots that all they want to do is talk politics and trash talk eachother.

This easily could have been titled "Childish investors with no foresight have knee-jerk reaction to something that was already predicted." Or perhaps "Company does the right thing, angers investors."

Stock price no longer has any real tie in with the success or failure of companies. It's just a ticker number that people who participate in real-life gambling pay attention to.