Microblogging site Twitter’s shares slumped by more than 5.4% on Monday, recording the largest daily percentage decline in months after it suspended more than 70 million accounts over the last two months.
The stock price dropped sharply by nearly 10% on Monday morning before closing the day at $44.14, down from $46.7. The decline comes after reports emerged that suspension of accounts could impact growth.
Twitter has scaled up its fight against fake and suspicious accounts in the wake of a data privacy scandal that have provoked concerns about the security of online data collected by social media apps.
The rate of account suspensions has more than doubled since October when the company disclosed under congressional pressure how Russia used fake accounts to intervene in the United States presidential election.
It is reported that the aggressive removal of fake accounts may result in a rare decline in the number of monthly users in the second quarter, which ended June 30.
Meanwhile, Twitter’s chief financial officer Ned Segal tweeted on Monday that most of the suspended accounts were not active in the previous 30 days and that would not be counted in the Monthly Active Users metric.
Twitter’s Monthly Active Users reached 336 million in the first quarter of 2018; while revenue growth accelerated by 21% to reach $ 665 million at the end of March 2018.
Twitter’s CEO and Cofounder Jack Dorsy net worth declined by 0.8% to reach $ 5 billion, according to Forbes real-time billionaire ranking.
In the wake of the Facebook and Cambridge Analytica scandal, social media companies including Facebook and Twitter have increased their efforts to prevent abuse of their platforms.
Facebook took down 837 million pieces of spam and 2.5 million pieces of hate speech and disabled 583 million fake accounts globally in the first quarter of 2018. The social media company recently took down more than 10,000 fake pages, groups, and accounts in Mexico and across Latin America.