Despite Record Profit, Twitter’s Stock Price Falls More Than 20 Percent

Although Twitter achieved record profit and revenue growth in the last quarter, the stock price of the social network fell more than 20 percent on Friday due to an unexpected decrease in the number of active monthly users.

According to the business report released on Friday, Twitter’s profit for the last quarter was $100 million, while a year earlier the company reported a loss of $116 million.

This is only the third quarterly profit for the social network in its 12-year history, thanks to revenue growth.

>>> Twitter Achieved Second Quarterly Profit ‘in Its Life’

In the second quarter, the social network’s revenue reached $711 million, which is 24 percent higher than a year earlier.

The report also states that revenue growth is partly attributed to the World Cup, during which users sent around 115 billion impressions, bringing Twitter $30 million in revenue.

Despite the revenue and profit growth, Twitter’s stock price fell more than 20 percent on Wall Street on Friday as investors were disappointed by the fact that at the end of June, the number of active monthly users was 335 million, one million less than in the previous quarter.

This is a result, as explained by the company’s management, of the deletion of many fake accounts, which will continue in the upcoming period.

>>> Twitter Deleted More Than One Million ‘Terrorist’ Accounts

“The results of the second quarter show what we have done to ensure that many people get value from using Twitter daily. We want people to feel safe expressing their views and we have launched new tools to address behavior that distorts and detracts from public conversation,” said Jack Dorsey, CEO of Twitter, in the report.

On the other hand, the company stated that the number of active daily users increased by 11 percent in the last quarter compared to the same period last year, but did not specify the total number.

The increase in daily users “shows that the measures we have taken are increasing daily usage of the service,” Dorsey stated.

Twitter, which allows users to send messages of up to 280 characters, is among the most well-known social networks in the world, used by politicians, many famous stars from the film and music scene, activists…

However, the company is not growing as quickly as Facebook, the largest social network in the world with over 2.2 billion users.