Twitter's resurging campaign to crack down fake accounts cost the company a considerable loss of users. Meanwhile, the company remains optimistic despite its market performance slump.
Twitter is no stranger to negative figures as this is the second time the company registered a market loss.
According to Market Watch, Twitter (TWTR) took the said plunge, closing at USD$34.13. The company consequently lost a total of USD$6.6 billion in stocks. Prior to this huge dent, Twitter listed a record high 79 percent increase in growth in the past two quarters of 2018.
During an investors meeting, shareholders are quite concerned about the rapid decline of active users. However, this scenario was somewhat expected.
In fact, the San Francisco, California-based tech firm warned their investors ahead to expect a considerable fall of user numbers.
Previous reports indicate that the blue bird company has been hot on its trail in taking down fake accounts proliferating the site.
In the past few months alone, there are already a total of 70 million usernames wiped out of the platform. The numbers continued to stack up as the company further sought to reinforce its campaign against fake social media accounts.
"...we want everyone to have confidence that the numbers are meaningful and accurate," Vijaya Gadde, Twitter's legal representative told Bloomberg.
The loss of money brought by the purge is seen as a necessary measure to ensure the "health" of the platform.
"[Health] is one of those things like security or privacy," Twitter CEO Jack Dorsey explained during an earnings call, adding that, "Companies have to evolve and companies have to stay 10 steps ahead as you learn the dynamics of the network and get better and better. We have made some meaningful progress ... but there's still a lot ahead."
Taking hints on the executive's statement, it appears that more and more users will find their fanbase dwindling in numbers in the foreseeable future.
Twitter went on to credit its latest program as an initiative that will usher in "long-term growth" to the company, as it seeks to further improve "the health of the public conversation" made on site.
Twitter also attributed the share drop on Europe's renewed privacy law via the General Data Protection Regulation (GDPR), which is already taking effect in the recent months. The regulation seeks to limit tech firms, such as those in the social media, control on user's data.
Moreover, Twitter ended its contracts with third-party service providers that allow users to receive tweet updates through texts, aside from the ones they got from the platform.
