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Following a meltdown in Facebook, Twitter plummets 18%

28 July 2018

Twitter said it has been purging offending accounts, which led to many users seeing drops in their official follower counts, but it said a lot of them were inactive already and wouldn't impact monthly user numbers.

"We are proud of the tangible improvements people are seeing on Twitter", the firm said.

Twitter reiterated Friday that it is trying "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.

"Everyone knew that Twitter was full of fake accounts - why their removal should be impacting the share price in this way is unclear - investors may be better advised to keep a check on earnings and revenue growth instead".

Social media researchers for years had complained about the prevalence of bots - automated accounts managed by people seeking to shape online discourse - on Twitter, accusing the company of playing down the problem and not doing enough to curtail their influence.

More than $6bn (£4.6bn) has been wiped off the market value of Twitter after the social media service reported a drop of 1 million users after it finally took action to delete fake and offensive accounts.

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Twitter's second-quarter net income also hit $US100.1 million, after a loss previous year during the same period.

Average U.S. MAUs were 68 million for Q2, flat with the year-earlier period and down from 69 million in Q1.

Twitter's put its EBITDA guidance for the third quarter between $US215 million and $US235 million. Stalled American user growth and tighter rules on data protection in Europe may dampen revenue growth in two of the company's biggest markets.

But a lingering concern has been the stalled user base, with Twitter struggling to move beyond its core group of celebrities, journalists and politicians.

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

While Friday was Twitter's second-worst loss since it went public in November 2013, the stock has still doubled in value over the last 12 months.

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Twitter said in a blog post on Thursday that it does not "shadow ban" users, and that the issue of auto-populated search results had impacted hundreds of thousands of accounts, but did not target users by political affiliation.

Twitter again touted daily active user growth.

Earlier this year Twitter admitted that more than 50,000 Russia-linked accounts used its service to post automated material about the 2016 USA election. The number of users could also decline in the third quarter, Twitter warned.

In the meantime, Twitter's business, heavily dependent on advertising, is hanging in there.

On a per-share basis, the San Francisco-based company said it had net income of 13 cents. Japan remains Twitter's second-largest market, growing 65 percent and generating $122 million.

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Following a meltdown in Facebook, Twitter plummets 18%