Social media company Twitter reported a $2 billion loss in its yearly 10k report on Tuesday. The site, which went online in 2006 and features 140-character posts, has never been profitable and became even less valuable after its 2013 IPO.
The company honestly admitted to the problem by stating that its user base is shrinking even though revenue has increased. It added that revenues would most likely slow in the coming years, leaving the company’s future uncertain.
Twitter does prefer to measure its overall worth by using the adjusted earnings metric, which allows the exclusion of certain expenses and stock awards. This figure shows a profit of $277 million and is the one that Wall Street accepts as accurate, but the stock price dropped from $70 to $20 in 2015, which means investors are still skeptical of the company.
The loss of confidence from Wall Street may be tied to the way Twitter handles harassment on its service. Recently, it has been silencing the more outspoken members of the political right while ignoring ISIS accounts altogether. A 2015 decision to change the site’s “favorite” star feature to a more generic “like” heart has proved to be very unpopular with users.
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