Twitter is facing a steep revenue decline under new owner Elon Musk. Advertising revenue has plunged roughly 50% since Musk’s acquisition, highlighting his struggle to turn around the company after buying it for $44 billion.
Twitter’s website traffic and mobile app engagement have also fallen steadily this year. The drops underscore how some users and advertisers are losing confidence in Twitter amid Musk’s changes. The revelation of Twitter’s ad revenue plunge came directly from Musk in response to a user comment. He said Twitter needs to reach positive cash flow before considering any major changes.
Meanwhile, competitors like Meta’s new Threads app are positioned to siphon away Twitter’s user base. Industry analysts say negative sentiment has set in among both users and advertisers uncertain of Twitter’s direction under Musk.
By rolling back content moderation and reinstating banned accounts, Musk has alienated some groups. But Twitter was already facing challenges before his takeover. The question now is whether Musk can revive Twitter’s business by winning back users and advertisers.
H/T CBS
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