In this Oct. 13, 2015, file photo, the Twitter logo appears on a phone post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)

Bad week in social media gets worse; Twitter hammered on Wall St

Long criticized for allowing bad behaviour to run rampant, Twitter has begun to crack down

Cracking down on hate, abuse and online trolls is also hurting Twitter’s standing with investors.

The company’s stock plunged Friday morning after it reported a decline in its monthly users and warned that the number could fall further in the coming months. The more than 17 per cent drop in share value at the opening bell comes one day after Facebook lost 19 per cent of its value — its worst trading day since Facebook went public in 2012.

Twitter says it’s putting the long-term stability of its platform above user growth. That leaves investors seemingly unable to value what the biggest companies in the sector, which rely on their potential user reach, are worth.

Twitter had 335 million monthly users in the quarter, below the 339 million Wall Street was expecting, and down slightly from 336 million in the first quarter. That overshadowed a strong monthly user growth of 3 per cent compared with the previous year.

The company said its monthly user number could continue to fall in the “mid-single-digit millions” in the third quarter.

READ MORE: Facebook faces day of reckoning on Wall Street

Long criticized for allowing bad behaviour to run rampant on its platform, Twitter has begun to crack down, banning accounts that violate its terms and making others less visible.

Twitter is now attempting to rein in the worst offenders after years as one of the Wild West corners of the internet.

At the same time, it must convince people it’s the go-to platform in social media, even though it is dwarfed right now by Facebook.

Facebook has more than 2.23 billion users while its apps WhatsApp, Instagram and Messenger each have over 1 billion.

Twitter on Friday reiterated its efforts to “to invest in improving the health of the public conversation” on its platform, making the “long-term health” of its service a priority over short-term metrics such as user numbers.

As part of these efforts, Twitter said that as of May, its systems identified and challenged more than 9 million accounts per week that are potentially spam or automated, up from 6.4 million in December 2017. The company has previously disclosed these numbers.

A Washington Post report put the total number of suspended accounts in May and June at 70 million. The Associated Press also found that Twitter suspended 56 million such accounts in the last quarter of 2017. While Twitter maintains that most of these accounts were dormant and thus not counted in the monthly user figure, the company also warned that its cleanup efforts could affect its counted user base without giving specific numbers.

“We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviours that distort and distract from the public conversation,” CEO Jack Dorsey said in a prepared statement.

Twitter’s second-quarter net income hit $100.1 million, after a loss last year during the same period. It’s the company’s third profit in a row, the third it has ever posted.

Per-share, the San Francisco company’s net income was 13 cents, or 17 cents adjusted, in line with expectations, according to a poll by Zacks Investment Research.

Revenue of $710.5 million, up 24 per cent and edging out expectations of $696 million.

The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

VicPD seeks person of interest after short-term rental ransacked

Combined losses for damage and theft are over $5,000

Whitecaps favourite switches to the Island

Marcel de Jong worked to end Whitecaps contract, joining Pacific FC on the ground floor

RCMP ask for public’s help to determine cause of weekend fire

RCMP are investigating the cause of the South Island Concrete fire

UVic’s cutting-edge centre leading the way in drones and AI

Centre For Aerospace Research works with partners including Department of National Defence

B.C. BUDGET: Surplus $374 million after bailouts of BC Hydro, ICBC

Growth projected stronger in 2020, Finance Minister Carole James says

VIDEO: 8 things you need to know about the 2019 B.C. budget

Surplus of $247 million with spending on children, affordability and infrastructure

Greater Victoria Wanted List for the week of Feb. 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

‘Bullet missed me by an inch’: Man recounts friend’s killing at Kamloops hotel

Penticton man witnessed Summerland resident Rex Gill’s murder in Kamloops

B.C. BUDGET: Income assistance raise still leaves many below poverty line

$50 per month increase included in funding for poverty and homelessness reduction

B.C. BUDGET: Indigenous communities promised billions from gambling

Extended family caregiver pay up 75 per cent to keep kids with relatives

B.C. BUDGET: New benefit increases family tax credits up to 96 per cent

BC Child Opportunity Benefit part of province’s efforts to reduce child poverty

B.C. BUDGET: Carbon tax boosts low-income credits, electric vehicle subsidies

Homeowners can get up to $14,000 for heating, insulation upgrades

B.C. man survives heart attack thanks to Facebook

A Princeton man suffered a heart attack while at an isolated property with no cell service

B.C. man sues Maxime Bernier’s People’s Party over trademark

Satinder Dhillon filed application for trademark same day Maxime Bernier announced the new party

Most Read