Twitter Rebounds After CEO Claims The 70 Million Fake Accounts Were Not Part Of Its Metrics

Update: Twitter shares have rebounded, erasing half its losses, after CEO Jack Dorsey retweets that the 70 million 'bot' users removed from his platform were not included in the company's metrics...

50% retrace...

And right on time, JPMorgan defends the firm, saying "buy on weakness."

*  *  *

Well, what did you expect?

After slashing users at a rate of 1mm per day - removing as many as 20% of the total - it appears shareholders are questioning the smoke and mirrors they have been sold by Jack Dorsey at Twitter...

This is the biggest drop since March - for the company that was up 93% year-to-date before today.

As Bloomberg notes, Twitter rose 6.8% last week, coinciding with a positive note from Wells Fargo analyst Peter Stabler, touting the company’s success with video content and improved monetization efficiency.

The social platform’s "high valuation is expecting continued momentum in user growth and engagement that they have seen over the past several quarters," Waral said.

But now, the "volume of fake account deletion, albeit good for longer term, raises uncertainty on near-term user growth expectations," wrote Bloomberg Intelligence analyst Jitendra Waral.

But Twitter's stock is still up 83 percent year-to-date, and Waray believes the "risk to daily user growth should be low as the company has underscored low activity on the deleted accounts."

Comments

Sanity Bear NoDebt Mon, 07/09/2018 - 12:08 Permalink

It's not just the fake accounts... it's the marketing, and the political activism that creates so much garbage content, any real content gets buried. Plus how obvious it is how unnatural and curated the "trends" are (#WalkAway being just the latest massive trend not to show as a trend, while any Charles Blow op-ed gets auto-trended the moment it gets published), and people are starting to realize that whatever they hoped to get out of Twitter, if they're getting it at all it's not easy.

In reply to by NoDebt

Endgame Napoleon Ghost of PartysOver Mon, 07/09/2018 - 11:59 Permalink

For ordinary individuals, Twitter is a zoo, where you never know which animals are braying at you. I guess if you go on there with a fake avatar, it is different. You still only have a small space in which to make your point. 

For people who are not using it as a marketing tool, there are better social media platforms that aren’t so out-of-control. Or, you could comment in a non-public way on ZHedge.

Commenting on an article has more structure; you are responding to a set of ideas or news, whereas, for most people, Tweeting in the wind is just random.

It is a good way for famous people to get out a bite-sized message. But they will need to dodge the barrage of flashing, neon, kinetic ads and the cutesy, heart-ed inspirational quotes, interspersed with vaguely aggressive chirping from God know’s who?   

In reply to by Ghost of PartysOver

SRV FireBrander Mon, 07/09/2018 - 11:52 Permalink

Perhaps we'd even get notifications when we sign up... I never get any, and even secondary sites reposting don't seem to work!

I big worry I have is the normalcy creep... S/B massive crowds protesting what the Silicon Valley Agents are up to... yet nothing...

In reply to by FireBrander

DavidC Mon, 07/09/2018 - 11:08 Permalink

I wonder if I've been deleted. I've hardly used it since I registered a few years ago. Maybe I should try to log in to see if I've been deleted...nah, don't think I'll bother.

 

DavidC

Endgame Napoleon Rainman Mon, 07/09/2018 - 12:24 Permalink

Maybe, I am wrong, but I do not think the aggressive internet ad structure works.

I do like to see the better quality ad designs. I like to look at the color schemes and the composition. Despite the annoying deluge of ads—compelling people to buy products, based mostly on baby  imagery and identity politics themes—there have never been so many skilled designers, visually skilled designers.

It is not the ad design; it is the privacy issue.

I think it inhibits a strong consumer culture, not that a consumer-driven economy is the preferred route, but women value agency & privacy in shopping. And women do most of the shopping.

If these algorithms were trying to close face-to-face sales, they would need to show more respect, keeping their distance in some cases. Stalk an upscale furniture store client like some of these algorithms, and you will lose the commission that hoists up your tiny, minuscule pay.

Tell a cutesy story that makes assumptions before you know the customer base. That is not a good way to meet your quotas, either, certainly not when selling products that people associate with personal taste.

Stay back a distance until the customer has some questions. 

Especially with luxury items, once the customer expresses interest, assume the sale. Assume everyone can afford your priciest product, and anyone might prefer a bargain, providing the full range of premium-grade and price-down choices to all, presenting the choices to all with equal thoroughness, letting them have the agency to choose.

In reply to by Rainman

Cash Is King Rainman Mon, 07/09/2018 - 13:44 Permalink

They do but they don’t really care! They have to spend their budgets to get the same or more next year and as long as the CEO doesn’t demand evidence (see Restoration Hardware story for example) that their spend is a value add, they all keep their jobs. It’s really very simple to understand once you know how the scam works.

In reply to by Rainman

Pernicious Gol… Mon, 07/09/2018 - 11:13 Permalink

I'm envisioning a horde of spambots opening twatter accounts then rapidly as possible sending out hundreds of maximum-length random character messages into the clogged aether.

jcbudmo Mon, 07/09/2018 - 11:15 Permalink

DO NOT SUPPORT CULTURAL MARXIST IDEOLOGY

De-Google: use Brave browser + Duckduckgo

De-Twitter: use Minds

De-YouTube:use Bitchute

De-Paypal: use Patreon

 

RedDwarf jcbudmo Mon, 07/09/2018 - 11:36 Permalink

Close, but not quite right.  Here are some corrections.  All IMO of course.

De-Facebook: use Minds.  Minds is more akin to Facebook than Twitter.

De-Twitter:  use Gab.  Gab is a direct Twitter competitor.

De-Paypal: use Cryptos.

Patreon has cancelled accounts as well for SJW reasons.  It has not become a major issue yet, and it's better than most alternatives, but we need to be ready for it to become useless in the future.

In reply to by jcbudmo

Consuelo Mon, 07/09/2018 - 12:23 Permalink

Left-leaning types have always functioned on emotion over reason - hence how easy it is to attract/gain a following.   They also tend to be better organizers, as hate proves a much more (albeit temporary) galvanizing force.   Hence the 'leaders' of these social media giants enjoy such an outsized position in the market.   An Idiocracy at your disposal, 24/7.

Cash Is King Mon, 07/09/2018 - 13:21 Permalink

How the f@$& does a publicly traded company get added to the S&P (just a month ago) admit to purging 70 million fake accts. And not get investigated for being a complete ponzi?