Twitter Shares Slide After Reports of User Decline
Twitter shares fell around 9% last Monday, possibly prompted by reports of decline in monthly active users due to suspension of fake accounts in May and June.
It was estimated that the fall took down the microblogging site’s market valuation by $3 billion, which had stood at about $35 billion on Friday. Analyst Ali Mogharabi commented that the market reaction is likely due to the assumption that a lower user count would attract less ad dollars. He added that big advertisers now pay more attention to the content quality alongside which their ads are placed.
Twitter told its shareholders that while the amount of monthly active users may continue to be affected by the move against fake accounts, the number of daily active users may significantly be less affected.