Twitter Lost 2 Million Users This Quarter, and Now Its Stock Is Tanking
Due to “lower seasonal benefits and other factors.”
Twitter‘s pre-market trading is down 9.73% at $17.71 a share. The company has reported an average of 68 million monthly active users in the United States this past quarter, down from 70 million in the previous quarter. However, its revenue grew at the same time. Twitter beat Wall Street’s predicted revenue of $537 million USD by $37 million USD, with earning per shares coming higher at $0.12 than the expected $0.05, making this the 11th quarter Twitter exceeded earnings expectations.
During the first quarter, the company grew 9% in monthly users due to President Trump‘s frequent use of the platform. Twitter has also gone through redesigns of its web and mobile interface in the second quarter to compete with Facebook and other rivals, as well as to narrow their focus on “live” content. Twitter informed shareholders in a letter that it was able to improve engagement thanks to timeline and notifications improvements, attributing the inactivity of user growth to ”lower seasonal benefits and other factors.”
