Twitter Stocks Plunge After Fake Account Purge
Twitter stocks dropped 21 percent on Friday after the US social network reported user negative growth following its decision to remove fake accounts, according to market observers, Sputnik reported.
The price of a Twitter stock was at $34.13, which translated to a market capital loss of $6.6 billion, the Market Watch website estimated.
Two weeks earlier, the company’s president in charge of trust and safety announced it would start deleting tens of millions of automated accounts created to fake social media influence.
Meanwhile, earlier this week an exclusive report by Vice revealed that Twitter was limiting the ability of users to search for prominent Republicans. Twitter has denied that it engages in such practice, which is called shadow banning.
The plunge comes despite Twitter’s strong growth in profits for three consecutive quarters, with a net income of $134 million. By comparison, Facebook recently saw its stocks drop 19 percent, which cost it over $100 billion in market value.