So first come the Facebook woes. Then come the Twitter woes. We learn Twitter loses about 20% of their stocks. It’s not because of profits. But it’s because overall usage is down. Twitter gains profits but loses users.
Well, last time I checked, Twitter is doing a little better. As of this writing, they’re only 15% in the red. But it’s still a long way to go. The culprit: the smaller number of users, especially in the USA. While the number of int’l users is holding steady, US users take a decline. And it’s not even a big one. Statistics show that in Q2 2018, the US had 68 million Twitter users. That’s down from 69 million last quarter. However, it was clearly enough to make stockholders nervous.
They also doubt that Twitter can even hold an audience anymore. Experts predict Twitter followers and activity will continue to slip for years to come. However, Twitter profits are at an all-time high. In fact, Q2 gave Twitter record profits; the GAAP income came to around $100 million for that quarter. That’s well above what they expected. But even this ride probably won’t last long. Because experts also predict a decline in profits.
Like Facebook, Twtter had it’s woes over the past couple of years. We can go all the way back to 2016 and the Leslie Jones scandal (she was bullied so bad Twitter execs had to intervene). Remember when Twitter tried to bring the NFL on to boost usage? That didn’t work either. Let’s face it. Twitter needs followers in order to keep the profits going. It looks like they’re not getting them. I believe this turbulent political climate is also hindering Twitter. A lot of folks still don’t like President Trump. I know people near our Boston computer repair shop, and computer repair experts feel like that.? But guess what social media site he uses most? Could that have something to do with it. Twitter gains profits but loses users, and can they get them back?