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

The election brought in a ton of money

[rsilvergun]

I honestly think one of the main reasons Trump won was the media's refusal to call him out on obvious lies and his shady business record. And that refusal was fueled by a desire to see a horse race and to suck up all those ad buys. Trump should never have been a serious candidate. He refused to release his tax returns, has a string of failed businesses and a court case where he admitted under oath his net worth isn't near what he claims and a long history of extra-marital affairs of the sort that don't go down well with the base he was trying to appeal to. That baggage should have wrecked him. But the media continually went easy on him even as they piled on Hillary.

Of course if they'd buried Trump in his own bad press early on folks would have stopped paying attention and the guys bank rolling his campaign would stop; meaning no more free eyeballs and no more free ad money. Trump got something like a billion in free coverage most of it positive. But then again if the media was doing it's job we'd be calling Bernie Mr President.