In this Oct. 13, 2015, file photo, the Twitter logo appears on a phone post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)

Bad week in social media gets worse; Twitter hammered on Wall St

Long criticized for allowing bad behaviour to run rampant, Twitter has begun to crack down

Cracking down on hate, abuse and online trolls is also hurting Twitter’s standing with investors.

The company’s stock plunged Friday morning after it reported a decline in its monthly users and warned that the number could fall further in the coming months. The more than 17 per cent drop in share value at the opening bell comes one day after Facebook lost 19 per cent of its value — its worst trading day since Facebook went public in 2012.

Twitter says it’s putting the long-term stability of its platform above user growth. That leaves investors seemingly unable to value what the biggest companies in the sector, which rely on their potential user reach, are worth.

Twitter had 335 million monthly users in the quarter, below the 339 million Wall Street was expecting, and down slightly from 336 million in the first quarter. That overshadowed a strong monthly user growth of 3 per cent compared with the previous year.

The company said its monthly user number could continue to fall in the “mid-single-digit millions” in the third quarter.

READ MORE: Facebook faces day of reckoning on Wall Street

Long criticized for allowing bad behaviour to run rampant on its platform, Twitter has begun to crack down, banning accounts that violate its terms and making others less visible.

Twitter is now attempting to rein in the worst offenders after years as one of the Wild West corners of the internet.

At the same time, it must convince people it’s the go-to platform in social media, even though it is dwarfed right now by Facebook.

Facebook has more than 2.23 billion users while its apps WhatsApp, Instagram and Messenger each have over 1 billion.

Twitter on Friday reiterated its efforts to “to invest in improving the health of the public conversation” on its platform, making the “long-term health” of its service a priority over short-term metrics such as user numbers.

As part of these efforts, Twitter said that as of May, its systems identified and challenged more than 9 million accounts per week that are potentially spam or automated, up from 6.4 million in December 2017. The company has previously disclosed these numbers.

A Washington Post report put the total number of suspended accounts in May and June at 70 million. The Associated Press also found that Twitter suspended 56 million such accounts in the last quarter of 2017. While Twitter maintains that most of these accounts were dormant and thus not counted in the monthly user figure, the company also warned that its cleanup efforts could affect its counted user base without giving specific numbers.

“We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviours that distort and distract from the public conversation,” CEO Jack Dorsey said in a prepared statement.

Twitter’s second-quarter net income hit $100.1 million, after a loss last year during the same period. It’s the company’s third profit in a row, the third it has ever posted.

Per-share, the San Francisco company’s net income was 13 cents, or 17 cents adjusted, in line with expectations, according to a poll by Zacks Investment Research.

Revenue of $710.5 million, up 24 per cent and edging out expectations of $696 million.

The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Australian firefighters join Telegraph Creek efforts

Regional district extends State of Emergency another week to Aug. 17

UPDATE: 5 injured in plane crash following Abbotsford International Airshow

One in critical condition in incident involving vintage plane

District extends State of Emergency another week

There’s lots of work ahead, but today was a good day: BC Wildfire Service

B.C. Wildfires 2018: Thousands prepare to leave their homes at a moment’s notice

Northwest B.C. and Cariboo seeing most fire activity in province as crews battle 490 fires

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

2 girls, hand-drawn map in hand, sneak out of B.C. home for adventure

The pair’s escape has transit police reminding commuters to report unusual behaviour

Ex-B.C. teachers’ union leader among latest pipeline protesters to get jail time

Twelve people have been sentenced for violating court order to stay away from Kinder Morgan terminal

B.C. not prepared for a Humboldt Broncos bus crash, group says

An air ambulance advocacy group wants an overhaul of B.C.’s emergency medical system in rural regions

Liberals look at creating federal holiday to mark legacy of residential schools

AFN National Chief Perry Bellegarde said day to recognize painful legacy would boost understanding

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

B.C. gangster charged after man allegedly beaten with a golf club

Langley man facing aggravated assault charge after incident allegedly involved golf club and machete

‘Treed in perpetuity’: How to log without clearcutting

Thinning treed areas can make properties less vulnerable to fire and make money without clearcutting

Are you Canada’s next Masterchef?

Home cooks looking to follow their cuisine dreams can apply now.

Most Read