Twitter shares fall after reported accounts suspension

Shares of Twitter Inc (TWTR.N) fell 9 percent on Monday after it was reported that the social media company had suspended more than 70 million fake accounts in May and June, which could lead to a decline of monthly active users in the second quarter.

The slump wiped about $3 billion from the microblogging site’s market valuation, which had stood at about $35 billion on Friday. Twitter shares were last down 8.6 percent at $42.62.

The company has suspended more than one million accounts a day in recent months to reduce the flow of misinformation on the platform, the Washington Post reported late on Friday, citing data it obtained.

Twitter declined to confirm the figures reported by the Washington Post.

“MAU may continue to be negatively impacted in future periods due to our ongoing information quality efforts… While the magnitude of any potential future impacts is difficult to predict, we believe that DAU (Daily Active Users) will be less affected than MAU,” Twitter had said in a letter here to shareholders during the first quarter.

Twitter reported 336 million MAU in the first quarter. MAU is expected to grow nearly 3 percent to 337.06 million in the second quarter, according to Reuters.