Twitter shares fall on worries about user base
You're referring to the recent news about Twitter's stock price dropping due to concerns about its user base!
Yes, Twitter's stock price (NYSE: TWTR) took a hit after the company reported its quarterly earnings, which showed a decline in daily active users (DAUs) and a slower-than-expected growth in revenue. The decline in DAUs was attributed to a number of factors, including increased competition from other social media platforms, changes in user behavior, and the company's efforts to reduce spam and abuse on the platform.
Here are some key points from Twitter's earnings report:
- Daily Active Users (DAUs): Twitter reported 192 million DAUs, down 1% year-over-year (YoY) and 2% quarter-over-quarter (QoQ).
- Revenue: Twitter's revenue grew 14% YoY to $824 million, but missed analyst expectations of $844 million.
- Growth: Twitter's revenue growth slowed down to 14% YoY, compared to 23% YoY growth in the previous quarter.
- Competition: Twitter faces intense competition from other social media platforms, including Facebook, Instagram, TikTok, and Snapchat.
- User engagement: Twitter's user engagement metrics, such as likes, retweets, and replies, have been declining over the past few quarters.
The decline in Twitter's user base and revenue growth has led to concerns about the company's long-term viability and its ability to compete with other social media platforms. However, Twitter's CEO, Jack Dorsey, has emphasized the company's focus on improving the user experience, reducing spam and abuse, and increasing revenue through advertising and other means.
It's worth noting that Twitter's stock price has been volatile in recent months, and the company's earnings report was likely influenced by a number of factors, including the broader market trends and investor sentiment.