You'd think that President Donald Trump would be a huge boon to the social media company Twitter, especially now that every single day he seems to utilize his account to make major policy announcements, settle scores, or just have fun messing with the media. However, there's bad financial news for the company again, as it failed to grow its audience.
According to Bloomberg, the shares have fallen the most in the past nine months. Here's more:
A long-term turnaround depends on Twitter expanding its audience. That number stands at 328 million monthly active users -- the same as in the prior quarter, the San Francisco-based company said in a statement Thursday. Revenue fell 4.7 percent and the company’s net loss also widened, affected by a $55 million writedown of the value of its investment in SoundCloud, the German music streaming service.
Twitter is still working to prove that it can build a sustainable, growing business. After hitting a plateau with its user base and struggling with a slowdown in sales, the company started narrowing its focus, shuttering businesses and teams that didn’t fit its goal of being a destination for live-event content. With a goal of reaching profitability, Twitter began investing heavily in video, aiming to draw a more mainstream set of users and premium advertising deals. The network now has a promising set of partnerships in its pipeline, but some investors are skeptical that Twitter will ever be much bigger than it is today.
Instapundit actually has an explanation for the social media company's inability to attract new users: the company's political correctness is driving users away. "[T]hese things tend to happen when you go full-on SJW, and begin to ban controversial users – you know, the ones who generate clicks and links by being provocative. Or as Steve wrote a month ago, 'I miss the old Twitter, too, before the company discouraged honest give-and-take by going Full SJW.'"
Watch an interview on the topic below:
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