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The Twitter blog follows in the footsteps of Facebook and drops sharply on the New York Stock Exchange on Friday. The price decline has already started in the transaction and the share is trading at minus 14 percent just after opening at 15:30 Swedish time. (Take the course here.)
The main reason for the positive market reaction is that the number of monthly active users reached 335 million dollars for Twitter in the second quarter. This is a real decrease of 1 million compared to the first three months of the year – well below analysts' expectations of 338.5 million.
According to the company, the loss of users is due in part to the deliberate closure of fake accounts. Data Protection Act, GDPR in Europe
This is the third time in the history of Twitter just ten years, the company is reporting less users, not later as early as 2017.
"Our priority is health, and we are confident that this will lay the foundation for long-term growth," said Jack Dorsey, CEO and founder of Twitter.
Read more: "Technology companies are in different planets" ]
More positive for Twitter, sales rose 24% year-on-year and reached $ 711 million, well above analysts' expectations of $ 697 million.
Adjusted earnings were $ 265 million last quarter. Thus, pre-tax earnings were marginally better than the consensus forecast of $ 262 million driven by improved margins with higher average revenue per advertised ad.
But it was not enough to calm the market when Twitter painted a bleak picture for the future of 2018 third quarter in particular. Active users continue to receive millions of dollars and predict significantly lower pre-tax profits of between $ 215 and $ 235 million.
At the close of Thursday, Twitter had a market capitalization of about $ 32.2 billion, or 285 billion crowns. With the 14% price drop, a total of 40 billion Swedish kroner has exploded on Wall Street
However, this is not as hard against Swedish institutions as on the bottom Facebook button – when 6 billion-blue were scrapped. Approximately 0.3% of Twitter's shares are held by Swedish investors, with AP funds being the main player. In total, Swedish shares lose value of 95 million Swedish kroner after falling 14% of prices
According to the Bloomberg analysts' consensus, Twitter's share was overvalued before the report. It closed at $ 42.94 on Thursday, while the average target price was $ 34.39.
Read more: Swedish owners lost 6 billion in Facebook's historic course
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