After Facebook, now Twitter tanks by 20% after user numbers fall

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Drop in users: It sent shares down by 20% to $34.50 in morning trading


After Facebook, now Twitter tanks by 20% after user numbers fall

  • Twitter user numbers fell by a million in the last three months to 335m
  •  Boss Jack Dorsey said deleting fake accounts was one reason behind the drop
  • Twitter only started making a profit earlier this year

City & Finance Reporter for the Daily Mail

Shares in Twitter slumped almost 20 per cent after user numbers fell by a million in the last three months.

Boss Jack Dorsey, 41, said deleting fake accounts was one reason behind the drop to 335million users.

But user numbers are 9million higher than a year ago due to growth in international accounts. 

Drop in users: It sent shares down by 20% to $34.50 in morning trading

Drop in users: It sent shares down by 20% to $34.50 in morning trading

Twitter, which is free to use but makes money out of advertising, posted a 24 per cent rise in sales to £541million, boosted by strong demand during the World Cup.

Despite global influence, the company only started making a profit earlier this year. It has remained in profit, posting £76million for the second quarter. 

Shares fell to $34.50 in morning trading when it warned user numbers could keep falling as it purges more automated and spam accounts.

It followed a $122billion fall in the value of social media network Facebook on Thursday after it warned growth was slowing, and spending to improve privacy would knock its profits.

 

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