Twitter Reports Fall in Active Users, Shares Drop 19 Percent
Shares in Twitter dropped close to 20 percent Friday after the social media giant reported a fall in active users.
Twitter said it had 335 million monthly users in the second quarter of the year, which was down a million from the amount of monthly users in the first quarter of the year, and below the 339 million users Wall Street was expecting.
Twitter said that the number of monthly users could continue to fall next quarter as it continues to ban accounts that violate its terms of service and makes other accounts less visible.
The company says it is putting the long-term stability of its platform above user growth. However, the move has made it more difficult for investors to value the company as they rely on data of the platform’s potential user reach.
Shares in Twitter closed at $34.12 Friday. The fall in share prices came despite Twitter reporting higher than expected revenue. During the last quarter, Twitter posted a profit of $100 million, marking the company’s third consecutive quarter in profits.
The drop in Twitter shares comes a day after Facebook lost 19 percent of its value.
Facebook said Thursday that slower user growth in big markets and increased spending to improve privacy would hit margins for years, leading to the company’s worst trading day since it went public in 2012.
California Wildfires Rage On
Northern California's wildfires have destroyed 500 structures, and officials say 5,000 more are being threatened by the massive blaze.
Two firefighters have died combating the so-called Carr Fire.
Tens of thousands of people fled for their lives as the inferno reached the city of Redding, home to more than 90,000 people.
The fire has scorched upwards of 17,000 hectares of land, the state’s forestry and fire protection department (Cal Fire) said.
Tourists and hikers whose vacation plans included visiting Yosemite National Park are
making other plans because of the raging Ferguson Fire. The park has been closed since July 25 and is not expected to re-open until August 3.
Park officials say at least 1,000 campground and hotel bookings have been canceled.
The winds fanning the flames of the fire in Northern California have been so strong in some areas that trees have been uprooted.
In Southern California, a fire, believed to be caused by arson, has forced some 12,000 residents of the town of Idyllwild to evacuate. Authorities have arrested a suspect in the fire.
Governor Jerry Brown has declared states of emergency for areas on both ends of the state. His request for federal emergency assistance said the aid was needed to prevent an "imminent catastrophe."