>> Twitter's share is down 20% Friday after reporting a drop in users in it's latest earnings report. Reuters Breaking News columnist, Rob Sirian.>> They have 1 million fewer users than last quarter and the reason the company gave is they're cleaning up their platform. So they got rid of a lot of fake accounts, toxic accounts.
The other problem is that Twitter said, next quarter they're gonna continue doing this. And they'll probably lose about 5 to 6 million more users, so that's not good for investors.>> Twitter has been cracking down on fake users in recent months with the company reportedly purging tens of millions of suspicious accounts.
And while it turned a profit for its third straight quarter and beat Wall Street revenue and earnings expectations, investors were clearly unimpressed. This follows disappointing results from Facebook which took a nosedive on Thursday.>> Investors were just expecting way too much from both of these companies. Twitter's been saying for several quarters, growth can slow, guys we're slowing down.
We're gonna have to invest more to prevent all these fake accounts going on Facebook and spam and all these things. Something similar to Twitter, everyone knew that at some point, they're gonna have to crack down.>> Plagued by fake news and haunted by a data scandal, Facebook has been forced to spend more on it's platforms while user growth is slowing.
The fallout is so bad that on Friday, a Facebook shareholder filed the first of what could be many lawsuits against the social media company and CEO Mark Zuckerberg. The lawsuit claiming Facebook misled shareholders about its business