Based on Twitter’s last disappointing second quarter of 2018 Earnings Report, Twitter’s stock plunged 20.5% in Friday trading.
This fall in Twitter’s market value is a result of the fact that the number of active monthly users fell from 336 million to 335 million over the past three months.
Twitter reported second-quarter earnings before the bell on Friday:
Earnings per share: 17 cents vs. 17 cents, according to a Thomson Reuters consensus estimate.
Revenue: $711 million vs. $696.2 million, according to a Thomson Reuters consensus estimate.
Monthly active users (MAUs): 335 million vs. 338.5 million, according to StreetAccount and FactSet estimate.
It should be pointed out that Twitter’s shares opened down by 15% when Wall Street opened on Friday before the investors had been reported, reaching a total of 20.5% by the time the markets closed Friday.
The drop in Twitter’s stock – considered to be the second-biggest loss for Twitter’s stock since the company went public in 2013 – comes a day after Facebook has a great fall in its market value of about 19%, after it announced in its third quarter report that it had lost 3 million users in Europe since the Cambridge Analytica data breach scandal and the introduction of strict EU privacy laws.
As a reminder, Twitter company has been under fire from the US Congress to prevent bots and Russian-run accounts, which had been used to influence the 2016 presidential election.