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

Election 20201 week ago

The State of Maine Will Use Ranked-Choice Voting for Future Presidential Elections

The Pine Tree State progresses towards more electoral reform.

by , The Catholic American University
LGBT2 weeks ago

Former Catholic High School Principal in California Alleges Job Firing Because He is Gay

The fight continues for the LGBTQIA+ community in the classrooms of private education.

by , The Catholic American University
Education3 weeks ago

California Will Offer Tuition-Free Community College for In-State Residents

The Golden States moves towards affordable access for higher education.

by , The Catholic American University
Business4 weeks ago

CBS and Viacom Will Merge Once Again

Media and entertainment oligopoly is growing.

by , The Catholic American University
Equality1 month ago

Illinois Will Now Mandate LGBTQIA+ History Curriculum to be Taught in Public schools

The land of Lincoln is becoming more inclusive in its curriculum.

by , The Catholic American University
Doctor holds a newborn baby after a Caesarian. Doctor holds a newborn baby after a Caesarian.
Government1 month ago

U.S. Teen Birth Rate Starting to Decline Nationwide

As the country's birth rate stagnates or declines, so does teen birth rates.

by , The Catholic American University
Equality1 month ago

North Carolin Governor Blocks Public Funds for LGBTQIA+ Conversion Therapy By Executive Order

State or Federal funds will be impacted by executive order.

by , The Catholic American University
National News2 months ago

Poll: Almost 40% of College and University Undergraduates Nationwide Favor Socialism

Socialism is slowly rising amongst college youth.

by , The Catholic American University

Most Read From CMN Writers

[]
1 Step 1
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Copyright © College Media Network