Bad week in social media gets worse; Twitter stock hammered

Twitter share price tumbles after it loses 1m users in three months

A day after Facebook's rout, Twitter plunges on weak user numbers

But just like Facebook, Twitter said it's hitting a limit on how many people it can attract to its service, raising hairy questions about what these services can become. Trump on Thursday accused Twitter of "shadow banning" prominent conservative voices.

Twitter's ad business is growing, and some of its top advertisers have praised the focus on the platform's overall health as necessary for their long-term interest there.

Twitter blamed the active user decline on new European privacy rules and its decision not to move to paid SMS carrier relationships, and on its efforts to clean up the platform. "Based on our current level of visibility, we expect the decline to be mid-single-digit millions of [monthly active users]", the company said in its investor letter.

Twitter had 335 million monthly users in the quarter, below the 339 million Wall Street was expecting, and down slightly from 336 million in the first quarter.

Twitter posted earnings per share of $0.13 on revenue of $711 million, a 24 percent rise over the prior year. The stock has more than doubled in the last 12 months. Technology improvements have resulted in removing twice the number of accounts that violate Twitter's spam policies.

Twitter is now attempting to rein in the worst offenders after years as one of the Wild West corners of the internet.

Twitter share price tumbles after it loses 1m users in three months

At the same time, it must convince people it's the go-to platform in social media, even though it is dwarfed by Facebook. Its size is only about a seventh of the more than 2.5 billion Facebook counts across its website, the WhatsApp messaging service and the Instagram photo-sharing app.

Twitter, like bigger rival Facebook Inc, has been under pressure from regulators in several countries to weed out hate speech, abusive content and misinformation, better protect user data and boost transparency on political ad spending.

The company said it is now challenging more than 9 million questionable accounts a week, up from 6.4 million last December. The company doesn't disclose the total number of daily users. In May and June, it suspended 70 million fake or suspicious accounts before they became part of the company's official MAU count.

Twitter escalated its battle against suspicious accounts late previous year in the face of congressional and public pressure following revelations about how Russian Federation used the platform to spread disinformation to shape the 2016 presidential campaign in favour of Republican Donald Trump and against Democrat Hillary Clinton.

On Friday, the social media company reported declining monthly active users.

The woes for Twitter came a day after Facebook lost an unprecedented $120 billion in market value following its earnings report, which left investors panicked over worries of cooling growth for the social network star. Analysts had expected a gain of 1 million users, and the results could harden concerns that Twitter lacks a clear strategy to grapple with various platform problems and grow usage and revenue together.

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