Twitter Stock Takes a Hit on Fake Accounts Cleanup

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Twitter stock (NYSE:TWTR) fell on Monday as the company announced that it was in the process of getting rid of millions of bots and other fake accounts.

Twitter Stock

The social media site made the decision as it seeks to improve the sanctity of its site and to ensure that its users only interact with other real users. However, the company’s decision to suspend so many bots has had a negative effect on investors worried about how this move will affect the company’s overall user count.

Twitter said in a statement last week that the company’s technology team was able to identify north of 9.9 million potential spam accounts per week. The decision echoes a recent Washington Post report, which said that the company had suspended 70 million accounts in May and June as part of its cleanup efforts.

This means that Twitter’s efforts could have a negative effect on more than 20% of the platform’s impressive user base of 336 million users as these could get purged from the site. However, with TWTR shares falling as much as 9% at one point on Monday before recovering, chief financial officer Ned Segal that the numbers are not what they seem.

“If we removed 70M accounts from our reported metrics, you would hear directly from us,” Segal said in a tweet. “This article reflects us getting better at improving the health of the service.”

TWTR stock fell about 5.4% on Monday following the news.


Article printed from InvestorPlace Media, https://investorplace.com/2018/07/twitter-stock-fake-accounts-twtr/.

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