Twitter shares slump 10% as revenue forecast upsets

Company - Mohit Shah - Feb 08,2019

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twitter shares slump ten percent as revenue forecast upsets

The 4Q earnings of the social media giant, Twitter, showcase profit but revenue for the first quarter of 2019 seem disappointing.

Revenue share for the first quarter of 2019 is projected to fall between $715m and $775m, lower than the forecasted statistics by analysts.

Twitter shares slump even though the social media giant reported profits worth $255m (£197m) during Q4 of 2018. These statistics were more than twice the $91m profit the company made in the preceding year since the advancements made in advertising revenue.

It has been noticed that rising costs for Twitter have emerged since social media companies are facing enlarged pressure to examine the content posted on their sites, subsequent to scandals associated to mental health, hate speech, user privacy, and political campaigning.

According to Twitter, it had discarded millions of abusive accounts as a clean-up effort, encouraging a drop in monthly users.

Presently, close to 321 million individuals use Twitter, calculated as a monthly record, dropped from 330 million a year as noted earlier.

Twitter's chief executive, Jack Dorsey, said: "2018 is proof that our long-term strategy is working".

He further added that the company entered this year confidently and is positive about a strong performance.

The social media leader said it would discontinue the disclosure of monthly active users and shift to recording active daily users.

Looking at the daily user count, the platform recorded 126 million users during the fourth quarter; risen by 1.6% from the previous period.