Facebook and Twitter Pummeled on Wall Street, Google+ Gives Up - Mostly
This week was a bad one on Wall Street for Twitter, Facebook, and others, even if they posted better-than-expected revenue results. Meanwhile, Google has dropped the Google+ sign-up requirement for unrelated services and platforms starting with YouTube. But that doesn't mean it's giving up on social entirely...
It's time again for Social Media Sunday!
Beats Revenue Estimates, Dumped on by Wall Street Anyway
This week, Facebook, Twitter, and other technology companies posted second quarter results and Wall Street responded to most, including Facebook, by sending stock prices down.
Facebook beat analyst expectations for revenue, according to Forbes, and showed a healthy, growing active user base. But expenses grew over 80 percent due, in large part, to increased hiring. That caused the stock to fall 3.6 percent in after-hours trading after Facebook released the report on Wednesday.
Facebook wasn't the only company to post positive results this week, only to subsequently have its stock price dumped by the market. LinkedIn, reported Forbes, suffered a similar fate, despite beating revenue and earnings expectations on Thursday.
Baby Zuck On the Way
Mark Zuckerberg wrote a business-unrelated post on Facebook this week, announcing he and his wife Priscilla Chan were expecting a baby.
Rare for the usually personally private Zuckerberg, as the LA Times reported, he also opened up about the three miscarriages the couple suffered in the last two years in the process. Check out his Facebook page here.
Clobbered on Wall Street
If Facebook can't please Wall Street by beating revenue expectations, you know Twitter was in trouble this week.
Indeed, the company posted Q2 revenues that were higher than expected, along with other average or decent numbers like net income on Tuesday, according to Forbes. And the stock actually jumped 10 percent in after-hours trading, until interim CEO (and Twitter co-founder) Jack Dorsey spoke to investors and media in an earnings call.
Dorsey spoke on the sluggish growth in active members on the 140-character network, promising a broad overhaul and "questioning of our fundamentals" to make Twitter more accessible to those who have never tried it.
The value of stock in the company fell 12 percent after his talk, which presages changes that may be announced at Twitter's annual developers conference, Flight, which is happening in October, according to Mashable. Twitter die-hards will have to wait until then to find out just how much more like Facebook their favorite social media platform will become.
Giving Up, Mostly
It's probably seen as a long time coming, but as the Wall Street Journal reported this week, Google+ as a social network rival to Facebook and others is pretty much dead.
The head of Google+, Brad Horowitz, said Monday that users would no longer need Google+ accounts to use other Google products. Any Google account or Gmail login will now work.
Undoubtedly this comes as great news for the YouTube users outraged when Google implemented a Google+ requirement in order to post comments or videos on the world's largest video site. The company had already ended that requirement for personal media storage with the recent launch of Google Photos.
Google+ will instead focus on what it does best: connecting users around common interests. Don't believe Google+ will survive in social at all? Think again.
As we previously reported, Pew's 2015 Teens and Social Media study found that young Latinos use Google+ at a rate that was statistically significantly higher than Black or White Teens signed up for the service, a particularly impressive statistic given that 33 percent of teens in the U.S. use Twitter.
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