Connect with us

Business

Twitter Stock Drops as They Crack Down on More Fake Accounts

Twitter suspended a total of 70 million user accounts in the months of May and June, said CNN.

Brandon Walker

Published

on

On Monday, Twitter stock fell by 9% at the most after the company heightened its amount of suspensions on fake accounts, reported CNN. Twitter suspended a total of 70 million user accounts in the months of May and June – representing more than one million accounts each day.

Ned Segal, the chief financial officer of Twitter, made clear that the removed accounts are those that have not been active in the past 30 days, and as a result, are not included in the company’s metrics of active members.

Segal tweeted “If we removed 70M accounts from our reported metrics, you would hear directly from us” noting that The Washington Post report “reflects us getting better at improving the health of the service.”

After Segal’s statement, Twitter stock bounced back a little. The overall stock scare is believed to come from issues like online privacy, fake news, and election interference – major problems within the tech industry.

Tech giants are in a “race to clean up their platforms and eliminate bad actors,” CNN said. “User growth is often the key focus point for Wall Street in evaluating the strength of social media platforms and their potential to grow ad dollars.”

Even though Twitter stock dropped quite a bit, analysts suggested that the decrease really isn’t that significant.

“The market is overreacting,” said Michael Pachter, an analyst for Wedbush, a private financial services and investment firm. “If active accounts were eliminated or suspended, the affected users would be more vocal.”

According to CNN, Twitter stock actually almost doubled during the year. Other analysts agree with Pachter, citing Wall Street’s quick responsiveness to changes that companies make.

“The Street is hyper sensitive to any speed bumps for Twitter as the stock has had a massive run over the last six months,” says Daniel Ives, chief strategy officer of GBH Insights.

“We see minimal financial impact as of now,” he added.

Jumpstart a career doing something you are passionate about with one of College Media Network’s courses. Read about our current offerings, schedule and unique virtual learning environment here.

Brandon Walker is a junior finance major at Temple University. He is a committed writer and jazz pianist. Brandon has written for The Temple News and is interested in a career in business and communications. He can be reached at brandon.walker@temple.edu.

CMN Reports

Equality2 weeks ago

Colorado Bans Conversion Therapy for LGBTQ Youth

The Centennial State moves forward in progress for the queer community.

by , The Catholic American University
Government2 weeks ago

Illinois Legalizes Recreational Marijuana

The Prairie State advances towards cannabis legalization.

by , The Catholic American University
Government3 weeks ago

New Hampshire Becomes the 21st State to Abolish Capital Punishment

The Granite State makes a huge step towards criminal justice reform.

by , The Catholic American University
Equality3 weeks ago

Maine Bans LGBTQIA+ Conversion Therapy for Minors

The Pine Tree State further progresses in queer rights.

by , The Catholic American University
Election 20204 weeks ago

Elijah Manley: The Youngest Person to Ever Run for U.S. President

Meet the youngest person ever to run for U.S. president.

by , The Catholic American University
Government4 weeks ago

Poll: More than 40% of Americans Embrace Socialism

Socialism is gradually on the rise.

by , The Catholic American University
Government1 month ago

Washington Becomes First State to Have a Public Insurance Option

The Evergreen State is going to compete in the healthcare insurance market.

by , The Catholic American University
Free Speech1 month ago

Serious Controversies Ensew Turning Point USA at University of Nevada, Las Vegas

Controversies ranging from racism to assault plague UNLV.

by , The Catholic American University

Most Read From CMN Writers