Two big players in the social media field took a nosedive in the stock market this week. On Thursday Facebook stocks took a nosedive with shares falling 19 percent, dropping shareholder wealth down by about $120 billion., making it the biggest one-day loss in stock market history.
The reason for the quick sell-off was due to Facebook’s Q2 revenue results. The fake-news scandals and the user privacy scandal seem to have at least partially contributed to this result.
Twitter shares fell 20% yesterday, when the company announced it had actually lost users rather than gain them. Twitters Q1 user count of 336 million users dropped a million down to 335 according to the Q2 user count results.
The odd part of the share fall is that Twitter had been intentionally eliminating users for the benefit of the community. Bots, and other fraudulent accounts were removed.
Account suspension / removal from Twitter has actually been happening aggressively for some time, with the platform removing racist individuals and organizations and other hate-spewing accounts from the service.
Despite their user count falling, Twitter reported good Q2 revenue results. In their Q2 letter Twitter states it’s longterm goal is to improve the “long-term health” of Twitter, which meant taking steps to clean through the current issues plaguing the company.
Regardless, neither platform seems to be too concerned over the recent pitfalls, focusing on the longterm benefits of chipping away at the bots and fake news of the internet.