Could Celebrity Boycott Damage Twitter Stock?

October 13, 2017 - Baystreet.ca


Shares of Twitter Inc. (NYSE:TWTR) were up 1.19% in mid-afternoon trading on Friday, October 13. The stock is up 14.6% in 2017 but has fallen 55% since its initial public offering in 2013. The company has been plagued by controversy as the site has been a battleground for intense political rhetoric over the last few years.

There has been severe fallout following sexual harassment and assault accusations against famed Hollywood producer Harvey Weinstein. Actress Rose McGowan was suspended from the Twitter platform this week after violating the terms of service by posting a private phone number. The response has been explosive. Prominent figures have called for an October 13 boycott of the website with the hashtag #WomenBoycottTwitter.

The website has been in a ceaseless battle with those demanding censorship of the platform. Twitter has vowed to become more transparent when it comes to its expectations regarding user behaviour and speech.

Twitter reported its second quarter results on July 27. The website’s monthly user base declined by 2 million users in the quarter and second quarter revenue decreased 5% to $574 million. Twitter boasted about the progress of its live-video strategy as it delivered more than 1,200 hours of live video in the second quarter. The company posted a net loss of $116.5 million in the second quarter, and it has not yet posted a profit.

The recent boycott is unlikely to have long-term implications, but serves as another reminder that Twitter is having a difficult time balancing the demands of its broad user base.