Twitter Retains Deleted Messages Thanks To Functional Bug

Twitter (NYSE:TWTR) has been hit by a functional bug, which enables the social media giant to store deleted messages on its platform.

Notably, the company allows users to delete direct messages from their side of the conversation. However, per recent reports from TechCrunch, these deleted messages are in fact stored by Twitter and can be accessed on downloading archived data on their account.

Moreover, the company also retains conversation from accounts that have been deactivated. This is a complete violation of Twitter’s policy, which assures users that upon the deactivation of their respective accounts, the company has a 30-day grace period to remove their data.

This incident undermines the brand’s integrity and reputation and is a breach of Europe’s General Data Protection Regulation (GDPR) policies. Per the GDPR policy, individuals have the right to have their data deleted and should be informed in case the same is stored by companies.

The GDPR law requires companies to invest heavily in the security of user’s data, failing which, they will be susceptible to facing a maximum fine of either €20 million ($23 million), or 4% of the company’s prior-year annual revenues. Notably, such a breach could affect Twitter’s profitability and user base as well in the near term.

Security Lapses

Proliferation of fake news and data breaches continue to affect the user base of the tech giant. Notably, Twitter’s average monthly active users (MAUs) totaled 321 million in the last reported quarter, down from 330 million in the year-ago quarter and 326 million in the prior quarter.

The company is facing civil proceedings in Russia for failing to comply with local data laws. Per reports, Moscow plans to impose huge fines on tech firms that disobey Russian laws.

Further, per reports, Twitter has been found lagging in dealing with abusive accounts. The researchers found that more than 167,000 apps are plugged into Twitter’s service and spread disinformation, spam and malware. However, the company shuts down accounts only after there have been more than 100 tweets.

Twitter, Inc. Price and Consensus

Twitter, Inc. Price and Consensus | Twitter, Inc. Quote

Twitter’s Initiatives Ahead of Elections in EU

However, Twitter has been ramping up its security measures to boost its user base. Recently, the company announced the tightening of EU political ad rules ahead of elections, following the footsteps of other social media giants like Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) .

Per the new rules, advertisers who want to place political ads on Twitter’s platform will need to be certified by providing their photo ID or a company identification number.

Moreover, all ads related to election and other political issues will be in the form of “promoted tweets”, which will be accessible by the public. Further, the database will provide information on the budget of the campaign, number of viewers as well as the demographic details of the audience.

Notably, these measures are aimed at preventing any foreign interference in the upcoming elections. These initiatives will aid the company in repairing brand image and attracting advertisers on its platform.

Zacks Rank & Another Stock to Consider

Currently, Twitter carries a Zacks Rank #2 (Buy).

Another top-ranked stock in the broader computer technology sector is MeetMe, Inc. (NASDAQ:MEET) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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