Facebook and Twitter, the two most used social media enterprises who have gathered almost the half of the world’s population are in chaos as user accounts and stock shares are in a nose-dive.
The shares of the social networking platform, Facebook, collapsed on Thursday at the opening of the New York Stock Exchange over 18 percent, affected by its poor results and forecasts in the balance presented a day before. This caused the company to lose more than 100,000 million dollars of capitalization.
After falling to 19.6 percent at the start of operations, the shares of Mark Zuckerberg’s company fell 18.34 percent to $177.61, which translates into a loss of capitalization estimated at $115 billion of dollars.
The company achieved just 1.54% growth in the number of new monthly users, up to 2,230 million, which contrasts with the 3.42% boost registered in the first quarter of the year and which represents the lowest increase of its history. The figure was also below the market estimates, which predicted 2,250 million followers.
The day after Facebook registered a collapse of its shares that reached to surpass 19%, on Friday it was the turn of another social network, Twitter, that during the noon fell near a 19% after reporting a considerable loss of users.
According to the data corresponding to the second quarter of the year, Twitter presented a balance with 335 million users, just below the 336 million it had in the first three months of 2018, but still lower than the 339 million expected in Wall Street.
Is this decline because they made a purge of false accounts and applied measures against the “bots” that manipulate the platform?
Twitter CEO Jack Dorsey attributed the decrease to the entry of General Data Protection Regulation(RGPD), Twitter brought earlier this year.
“We want people to feel safe to express themselves, and that is why we have launched new tools to address the problems that distort and deflect the public conversation.”, said Jack Dorsey. Twitter may face a blockage in Pakistan over blasphemy tweets issue.
Even though both giants of social media, Facebook and Twitter have suffered a huge blow in shares, it is not likely that they will die down anytime soon. They are too big to fall suddenly. The recent scandals have shaken the trust of people so they need to clear out the scandals and start with better policies to attract people once again.