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The second quarter for social platform Twitter showed disappointing numbers for the company and its shareholders as well. The main metric on which the organization is basing its whole operations didn’t live up to expectations. The user growth showed fewer monthly active enthusiasts than investors wanted. As a consequence, Twitter shares crumbled more than 14% just a day after the news.
Twitter Announced That the Grim Situation Might Continue until the End of the Year
Twitter is the first social platform many celebrities turn to in order to express their views on a topic, announce their news or communicate with their communities. One of the most loyal clients is actually the President of the United States himself, Donald Trump. On top of that, Twitter has been pushing really hard lately with exciting updates to boost user experience, especially in the video sector.
Despite all these efforts, the company revealed disappointing user growth during the second financial quarter. The numbers also showed lower revenue and a wider total net loss for the entire three months. On top of that, the company doesn’t have hope for a comeback by the end of this year either.
The disappointment of investors came when the company reported same 328 million average monthly active users as it registered in the previous quarter as well. However, analysts expected to see a slight increase in this sector and were looking at an 800,000 surplus of members.
Analysts Expected the Activity Alone of the President of the United States on Twitter to Boost User Growth
Analysts were taken aback by how the second quarter went on Twitter. That’s because the most powerful man in America has been using their platform several times on average a day since he entered the White House in January. Giving the flat growth in users despite such an important activity for the company, analysts fear that almost nothing else could revive this social network.
As a consequence, Twitter shares plunged on Thursday by 14% at $16.84 after they’d stayed at $16.50 long enough to erase $2 billion in market value. At the same time, the company has to deal with ruthless competition as well. For instance, Facebook announced that it scored massive evolution despite expectations for a mild quarter.
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