Shares in Twitter dropped close to 20 percent Friday after the social media giant reported a fall in active users.
Twitter said it had 335 million monthly users in the second quarter of the year, which was down a million from the amount of monthly users in the first quarter of the year, and below the 339 million users Wall Street was expecting.
Twitter said that the number of monthly users could continue to fall next quarter as it continues to ban accounts that violate its terms of service and makes other accounts less visible.
The company says it is putting the long-term stability of its platform above user growth. However, the move has made it more difficult for investors to value the company as they rely on data of the platform's potential user reach.
Shares in Twitter closed at $34.12 Friday. The fall in share prices came despite Twitter reporting higher than expected revenue. During the last quarter, Twitter posted a profit of $100 million, marking the company's third consecutive quarter in profits.
The drop in Twitter shares comes a day after Facebook lost 19 percent of its value.
Facebook said Thursday that slower user growth in big markets and increased spending to improve privacy would hit margins for years, leading to the company's worst trading day since it went public in 2012.