Social networks down: now Twitter has dropped 20% on the stock market

Twitter shares fell 20.5% yesterday at the end of the session on the New York Stock Exchange after the company reported its results and announced a decrease in the monthly number of active users.

The retracement is the second largest single-day hit by the social network since it's started trading on the market and the worst recorded since 2014.

Decrease adds to the previous day suffered by Facebook, which collapsed after submitting its quarterly accounts and experienced its worst day since its publication.

Yesterday, investors also reacted negatively to the accounts published by Twitter, even though the company maintained its profits in the second quarter of the year. and won a total of $ 161 million in the first half of 2018.

These gains contrast with the losses of $ 178 million that he had in the same period last year.

User loss s

According to badysts, among the data that contributed to the stock market crash is the loss of a million monthly active users, up to the end of the year. to 335 million, announced by the social network.

Twitter has eliminated some 70 million accounts, with the aim of improving the content of its platform, but according to the company, most of these accounts were not included in their users' statistics, since these users had not been active for at least one month

The company also announced that it was expecting a further decline in the number of users in the coming months , which investors did not like, especially those who appreciate the growth of this type of platform.

The fall of Twitter is in sync with that suffered one day earlier by other social networking giant, Facebook, which has recorded a historic decline and whose prospects are not optimistic ability to significantly increase the number of users in the immediate future.

The two falls in two of the largest social networks represent a challenge for these technologies in the future, according to specialists.

In recent times the networks have been questioned by the circulation through them of false information and in the specific case of Facebook for the management of the privacy of the users.

the other fall

During the last hours the networks had already suffered a shock of the sharp decline recorded by the shares of Facebook, which reached a historic mark.

These shares fell Thursday to 18.96 percent in the Nasdaq composite market index in reaction to its most recent quarterly earnings, in the worst Facebook day since its release.

The company's shares traded at $ 176.26 at the close of trading, a sharp drop from $ 217.50 on Wednesday, before submitting their accounts.

After this fateful day, Facebook has been experiencing the worst results in the stock market for more than six years, as it lost about $ 115 billion in capitalization

This figure represents a negative record for the social network, since It is the biggest loss of value suffered in a day by a firm in the US market, facing two technologies at the same time. which dragged in 2000 the Internet bubble, Intel (90.740 million) and Microsoft (80.024 million).

As in the case of Twitter, the markets sanctioned the unsatisfactory financial results of the network, the bi-annual part of Facebook appeared strong, in the second quarter of the year it revealed some weakness in its revenue figures and daily active users.

For some badysts, the fall of Facebook ok is mainly related to the questioning of its management of privacy, following the scandal Cambridge Analytica, which began in March.

As a result of this impact, Facebook achieved a quarterly turnover of 13.231 million, against 13.360 million which badysts anticipated.

In the case of the giant led by Mark Zuckerberg, the growth in the number of users did not conform to investors: on Wall Street he was also disappointed that the daily average active users in June reached 1,470 million people (11% more), since they were expecting 1.490 million.