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

Posted by BeauHD on from the cause-and-effect dept.

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.

5 of 126 comments (clear)

  1. Re:The election brought in a ton of money by Anonymous Coward · · Score: 5, Insightful

    Are you saying the media was easy on Trump? You are delusional.

    I wonder if the media are ready to call out these folks?;

    Obama’s chief economist: Trump’s economic projections are “the most absurd I’ve ever seen” He predicts huge growth rates, of 3 percent a year, without explaining how he’d get there.

    https://www.vox.com/policy-and-politics/2018/2/19/17012288/trump-budget-proposal-obama-chief-economist-jason-furman-interview

    Obama: Trump lacks ‘magic wand’ to grow economy. “He just says, ‘I’m gonna negotiate a better deal.’ Well how? How exactly are you going to negotiate that?”

    https://www.pbs.org/newshour/politics/watch-live-president-obamas-town-hall-in-elkhart-indiana

    Team Obama: Sorry, America, the ‘new normal’ may be here to stay

    "The good times may be over for good. In a speech to the Economic Club of New York yesterday, US Treasury Secretary Jack Lew said the US GDP growth rate, adjusted for inflation, is now projected to run a little above 2% a year."

    http://www.aei.org/publication/team-obama-sorry-america-the-new-normal-may-be-here-to-stay/

    If Trump thinks he can get more than 3% economic growth, he's dreaming

    http://www.latimes.com/business/hiltzik/la-fi-3percent-20170519-story.html

    Then there are the nonpolitical observers, such as bond guru Bill Gross, who says: "High rates of growth, and the productivity that drives it, are likely distant memories from a bygone era." And academic economists such as Northwestern's Robert J. Gordon, who states bluntly in his pessimistic book "The Rise and Fall of American Growth" that U.S. GDP's best years are behind it.

    http://www.latimes.com/business/hiltzik/la-fi-3percent-20170519-story.html

  2. Re:The election brought in a ton of money by Highdude702 · · Score: 4, Insightful

    Where do you get your weed man? I need some of that.

  3. Just so we're clear by raymorris · · Score: 5, Insightful

    > Using Twitter is like playing Russian Roulette. Every time you tweet, you pull the trigger.
    > case in point: James Gunn

    So what you're saying is every time you talk, things like this might spill out of your mouth?:

    "I like when little boys touch me in my silly place."
    -- James Gunn

    "The best thing about being raped is when youâ(TM)re done being raped and itâ(TM)s like 'whew this feels great, not being raped!'"
    -- James Gunn

    "walked over a table to one of the kid actors on set, looked at the kid, and started masturbating right at him. ... A string of semen shot out of the mini-monkey-wood and splash-landed DIRECTLY ON THE KID.
    Screaming and freaking out commenced.
    I know it might be sick, but that story makes me extremely happy."
    -- James Gunn

    "Watching Trapped in the Closet, R Kellyâ(TM)s second best video after the one where he urinates on a child.â
    -- James Gunn

    If these are the kinds of things you might randomly say, your Russian roulette, please - get help.

  4. I'm not sure why this comes as a surprise ? by nehumanuscrede · · Score: 3, Insightful

    Twitter had an exaggerated user base which inflated stock because more users = great company.

    Twitter wipes out a significant amount of fake accounts and the stock plummets.
    ( Company not quite as amazing as they pretended it was )

    Pretty sure that's how this is supposed to work ?

  5. Re:With the exception of the LA Times by fafalone · · Score: 3, Insightful

    [Picture of a turd]

    Fox News: "Now this is an amazing thing people, with its beautiful deep browns and rich filling aroma. And they've done such an amazing job with the lighting. We're witnessing something amazing here."

    CNN: "Folks, this is a pile of fecal matter. It looks and smells terrible, and isn't really a great thing."

    The Right: "Fake News!! Look at how biased CNN is, typical leftist media lies trying to make it look bad!!"

    There's a simple reason mainstream media outside of Fox almost always portrays Trump negatively: Because what he is saying and doing are actually terrible things. It isn't bias to call a turd a turd just because the other side is hell bent on trying to distort reality by insisting it's something wonderful.
    The right has an obsessive, pervasive campaign to try to turn outlets that lean a little to the left, and like everyone from time to time make an error, into incessantly lying intentional extreme-left propaganda outlets, and it's working beyond what they could have hoped for. Not only have they hoodwinked the entire right wing, even some left leaning moderates are buying into it. Meanwhile, Fox News is almost as bad as North Korea's state TV with distortion and leader-worship. On a bias scale of 1-10, CNN is a 2, MSNBC a 3, and Fox News a 9.