Time's person of the year and Dogecoin connoisseur Elon Musk stated that Twitter's daily userbase may almost fully consist of bots or spammers. The unpleasant statistics for the corporation may not end well for the price of its stock on the market.
According to Musk's statement, spam accounts may actually be the most profiles on the platform. So many accounts created solely for spamming or scamming authentic users are a black mark on the company's reputation and, potentially, stock.
In addition to receiving reputational damage, Twitter may face some serious issues with advertisers as daily active users is the main metric that is considered during ads' efficiency calculation.
Previously, the entrepreneur stated that he is yet to see any analysis that would provide the platform's stated less than 5% mark on the number of fake, spam or duplicate accounts on social media.
The number of authentic accounts and real active daily users is one of the main points of consideration for someone who is willing to purchase one of the biggest social media platforms in the world.
As news about Musk's intentions to deeply check the most important metrics provided by the platform appeared in the space, investors started rapidly selling their Twitter stock, causing a massive 10% drop on the market.
Back when rumors about Musk's potential purchase of Twitter appeared in the space, TWTR stock rallied by over 55% and reached the four-month high at some point. But as time went by, Musk has faced various obstacles on its way to overtaking the platform, which dispelled investors' optimism.