Social Media Stocks Plummet
Long gone are the days when names such as Facebook and Twitter were hip, fun-loving, and beyond repute. With Facebook in hot water because of their misuse of user data and twitter known for its status as the “wild west” of internet trolling, the two companies are now trying to rebuild their image. Twitter is trying to regain is public image by cracking down on hate speech and trolling. Twitter accounts associated with lewd or hateful content are being shut down, and thousands of accounts with “questionable” content are being made less visible. The company claims that these efforts are an attempt to promote its long-term stability, instead of focusing on the traditional social media goal of user growth. Twitter’s monthly users in the quarter dove to 335 million, well bellow the expected figure of 339 million.
Twitters new direction wasn’t rewarded by the market. The company took a 17 percent drop in share value. This is following in the footsteps of Facebook’s 19 percent drop. It seems as if investors value user growth over the curtailment of hate speech.
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