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NEW YORK (CNNMoney) –
Washington wanted Twitter to attack fake accounts. Now, Wall Street fears that Twitter has been overtaken.
Twitter shares fell to 9% on Monday after a report revealed that the company had lifted its suspensions of fake accounts, which could jeopardize the
The Washington Post reported Friday night that Twitter had suspended 70 million accounts in May and June in a continuing battle against misinformation and other abuses of social networks. That's more than a million accounts a day
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Twitter shares have recovered a bit after the chief financial officer from the company, Ned Segal, clarified that "most of the accounts" withdrawn from the service had not been active in the last 30 days and, therefore, were not listed in the numbers. monthly active users of the company.
"If we eliminated the accounts of 70 million of our reported metrics would hear directly from us," said Segal in a tweet on Monday, the figure would represent an incredible drop for Twitter, which counted 336 million. Active monthly users in the first quarter.
The sharp drop highlights nervousness among investors as tech companies such as Twitter, Facebook and Google compete to clean up their platforms and eliminate agents with bad intentions. [19659003] The technology industry has been facing more than a year of scrutiny for spreading false news and electoral interference. User growth is often the main focus of Wall Street to Evaluate the Strength of Social Media Platforms and Their Advertising Revenue Growth Potential
But Even Before Segal Needs Ntervian, several analysts have characterized the panic. investors on Monday so much noise about nothing
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"The market reacts from way, "said Michael Pachter, an analyst at Wedbush. "If the active accounts were eliminated or suspended, the affected users would complain."
A Twitter spokesman told CNNMoney an earlier announcement that reveals a significant increase in the elimination of accounts this year, because of improvements and the process. "
In April, the company told shareholders that their monthly numbers of active users could be affected among other things by" information efforts of consistent quality ", among other factors.
Some Analysts believe Investors may be more afraid of any suspicion of bad news about Twitter right now, in light of the company's recent winning streak.
The stock nearly doubled this year, before the report , thanks to renewed optimism for its restructuring efforts after the publication of two profitable consecutive quarters and further growth of users and
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"Common investors are hypersensitive to any cap that slows Twitter's speed, since the stock has had a huge upside potential e. Daniel Ives, Analyst at GBH Insights. "We see a minimal financial impact from now on."
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