Twitter shares fall after report of account suspensions goes public
CALIFORNIA: Shares of Twitter Inc fell 9 percent on Monday after a report said the social media company had suspended more than 70 million fake accounts in May and June, which could lead to a decline of monthly active users in the second quarter.
The slump wiped about $3 billion from the microblogging site’s market valuation, which had stood at about $35 billion on Friday. Twitter shares were last down 8.6 percent at $42.62.
“Such reaction is due likely to the assumption that the lower user count would attract less ad dollars,” Morningstar analyst Ali Mogharabi said.
Mogharabi, however, pointed to big advertisers now paying more attention to the quality content alongside which their ads are placed.
The company has suspended more than one million accounts a day in recent months to reduce the flow of misinformation on the platform, the Washington Post reported late on Friday, citing data it obtained.
Twitter declined to confirm the figures reported by the Washington Post.