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Twitter user growth stalls in second quarter

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Company reported 328 million monthly active users, the same amount as the previous quarter.
It seems the “Trump bump” didn’t extend into Twitter’s second quarter.
The company reported 328 million monthly active users during the period, the company announced Thursday, representing no change from the previous quarter, but up 5% from a year ago.
Shares of Twitter were down more than 10% in pre-market trading Thursday.
The company reported 260 million monthly active users internationally for the quarter, up from 259 million a year ago. In the U. S., monthly user growth dropped from 70 million last quarter to 68 million.
The big problem, said Wedbush analyst Michael Pachter, is Twitter isn’t doing enough to attract new users to the platform.
“They remind me of Best Buy, who just tries to milk more out of the same customer that walks through the door, but doesn’ t try to do anything to get you in the door, ” Pachter said.
The dip in U. S. monthly active users is surprising, Pachter says, considering one of its most prolific users is President Trump. Recently, Trump used Twitter to blast Attorney General Jeff Sessions and announce a ban on transgender troops in the military.
Last quarter, Twitter reported a 6% boost in monthly active users, attributed in part to increased user interest in news and politics sparked by Trump.
“The Trump effect lasted for exactly three months, ” said Pachter.
As for daily active users, Twitter says they’re up 12% year-over-year, the third straight double-digit bump. But it’s slower than the 14% boost they recorded during the first quarter.
For the quarter, Twitter reported $574 million in revenue, down 5% from a year ago, but still ahead of analyst estimates, according to S&P Global Market Intelligence. Advertising revenue fell 8%, to $489 million.
Follow Brett Molina on Twitter: @brettmolina23 .

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