Twitter’s stock fell 18% after it was revealed that there monthly active visitors count was lower than expected.
Despite exceeding revenue projections, Twitter monthly active user rates are down this quarter.
Twitter reported second-quarter earnings before the bell on Friday:
- Earnings per share: 17 cents vs. 17 cents, according to a Thomson Reuters consensus estimate
- Revenue: $711 million vs. $696.2 million, according to a Thomson Reuters consensus estimate
- Monthly active users (MAUs): 335 million vs. 338.5 million, according to StreetAccount and FactSet estimate
Shares were down as much as 18 percent when the news broke.
The company issued weak guidance as well, with adjusted EBITDA between $215 million and $235 million.
It likely won’t end this low but it certainly shows the nervousness surrounding these Tech Companies. Big Tech has come under attack from Conservatives due to censorship concerns. Conservatives have seen there profiles hidden and there accounts ‘Shadow Banned’ from what Big Tech called an ‘algorithm’ issue.
Yesterday Trump called out Twitter for the censorship of Conservatives.
Twitter “SHADOW BANNING” prominent Republicans. Not good. We will look into this discriminatory and illegal practice at once! Many complaints.
— Donald J. Trump (@realDonaldTrump) July 26, 2018