Twitter ad sales down 59%, company valuation down 66%

[WillyAp]

A new manager will stir up the sleeping workers. Twitter being a News Social network plus Elon Musk not caring to get some scratches, is swimming against the current mainstream. Just watch the interview, BBC is a news network run by its employees. 

I think most advertisers will come back. Let's not forget that Twitter has no competitors. 

I understand you may like the guy, you have 100% all the right to like the guy and think that he is doing the right thing. However, you need to also realize that people didn't like what he did and that's why he is losing money.

Couldn't care less for him. I don't drive a tesla or another car, nor do I plan to do so.
I like a few things he did, others I believe are plainly stupid.

New managers stir things up, that is the way new managers react, new ideas tend to be discarded. 
 

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[fuguebtc]

You just discussed about ad sales down but dont know how much musk/twitter got profit from their monthly subscription. Since Twitter now considered as private company the data out ther might is outdated or not really accurate tho.

and besides that I don't think Twitter will bankrupt anytime soon, especially with the hand of Elon looking at the other private company like SpaceX or the boring tunnel it eating billion of dollar but still stand out.

Admittedly, Twitter's revenue has dropped somewhat, and the company isn't doing as well as it used to. But we all forget that the world economy is in crisis, so it is normal for some companies to have difficulties. But many people looked at it and began to disparage and mock Elon.
In general, with the current world economic situation, I don't see too many companies reporting profits in the last 2 years of the economic crisis and not to mention a series of bankrupt companies and corporations. So, the fact that Elon helped Twitter survive and continue to grow through the great crisis has been a success, we should look at that positive side.

[flyingcarpet]

https://www.nytimes.com/2023/06/05/technology/twitter-ad-sales-musk.html

But Twitter’s U.S. advertising revenue for the five weeks from April 1 to the first week of May was $88 million, down 59 percent from a year earlier, according to an internal presentation obtained by The New York Times. The company has regularly fallen short of its U.S. weekly sales projections, sometimes by as much as 30 percent, the document said.

Twitter’s ad sales staff is concerned that advertisers may be spooked by a rise in hate speech and pornography on the social network, as well as more ads featuring online gambling and marijuana products, the people said. The company has forecast that its U.S. ad revenue this month will be down at least 56 percent each week compared with a year ago, according to one internal document.

Twitter’s valuation has since plunged. In March, Mr. Musk said the company was worth $20 billion, down more than 50 percent from the $44 billion he paid for it. Last week, the mutual funds giant Fidelity, which owns shares in Twitter, valued the company at $15 billion.

At this rate Twitter will either file for bankruptcy or will be sold for 5-10 billion to new owners. Or maybe Musk will double down and will start using his Tesla/SpaceX money to support Twitter, although if that happens, the shareholders of those companies will be very unhappy. Another way how Twitter can survive a bit longer is if it will secure funding from foreign governments. One of the buyers of Twitter together with Musk was a Saudi prince. Maybe Musk will start offering censorship/propaganda/data harvesting service to governments for a large fee to offset his ad revenue losses. Because blue checkmark sales are clearly not enough.

I wonder what Twitter will do to prevent this loss of value. Different things that Twitter will do will cause it to regain this value or have the opposite effect. They should pay attention to this. They can get ads they haven't received before to increase their ad revenue. Or, as you say, they can apply propaganda-style things by making an agreement with the governments.

Platforms can lose value, that's normal, but newsworthy when it comes to Musk. Even in such a situation, I don't think Musk will do any harm.

[S A KHAIR]

Well, it seems there are too many young economists here, who are still going to school, and some are still earning extra income to survive the inflationary period. But made statements criticizing and disparaging the richest man in the world and his way of doing things. What are you thinking in your head? Can you do it like him? Have you made billions of dollars like him?

[InfinityExists]

I have seen general improvements in Twitter though. Fewer bots, and more features. I think things will level out.

[Sithara007]

I have seen general improvements in Twitter though. Fewer bots, and more features. I think things will level out.

You win some, you lose some. When Elon took over Twitter, he made a number of drastic changes. Some of them were successful, while others were less so. Anyway, his plans are for the long term and therefore I don't think that he will be much worried about the temporary setbacks. The core point here is that Twitter retains a monopoly in its respective domain. There are simply no competitors for Twitter in the micro-blogging platform. And if the situation remains unchanged, the advertisers will return to Twitter sooner or later.

[Kakmakr]

In my opinion, there is a certain amount of Musk's own guilt here. He rushes from one extreme to another without a clear business strategy. One day he wants to be CEO, the next day he doesn't. Perhaps that is his plan: to destroy Twitter. Doesn't Musk have the money to hire proper advisors?

No, I disagree with you...

Elon Musk had some "trouble" with the previous owners and management of Twitter and I think he thought it would be a good idea to buy the platform and fire all those people. (Just to teach them a lesson)

This strategy failed, because Twitter was not "healthy" financially, when he bought it and when Musk realized that, it backfired on him. He wanted to back out of the deal, but they backed him into a corner.... so he went ahead with the deal. So the acquisition of Twitter was a "bad" deal.... and the people who angered Musk, got the best end of that deal. 

[Semar Mesem]

I think the increasingly difficult global economic situation like this also causes a decrease in income from many top sites, Google, Facebook and others also report a decrease in income so what is happening with Twitter is normal.

[Fortify]

https://www.nytimes.com/2023/06/05/technology/twitter-ad-sales-musk.html

But Twitter’s U.S. advertising revenue for the five weeks from April 1 to the first week of May was $88 million, down 59 percent from a year earlier, according to an internal presentation obtained by The New York Times. The company has regularly fallen short of its U.S. weekly sales projections, sometimes by as much as 30 percent, the document said.

Twitter’s ad sales staff is concerned that advertisers may be spooked by a rise in hate speech and pornography on the social network, as well as more ads featuring online gambling and marijuana products, the people said. The company has forecast that its U.S. ad revenue this month will be down at least 56 percent each week compared with a year ago, according to one internal document.

Twitter’s valuation has since plunged. In March, Mr. Musk said the company was worth $20 billion, down more than 50 percent from the $44 billion he paid for it. Last week, the mutual funds giant Fidelity, which owns shares in Twitter, valued the company at $15 billion.

At this rate Twitter will either file for bankruptcy or will be sold for 5-10 billion to new owners. Or maybe Musk will double down and will start using his Tesla/SpaceX money to support Twitter, although if that happens, the shareholders of those companies will be very unhappy. Another way how Twitter can survive a bit longer is if it will secure funding from foreign governments. One of the buyers of Twitter together with Musk was a Saudi prince. Maybe Musk will start offering censorship/propaganda/data harvesting service to governments for a large fee to offset his ad revenue losses. Because blue checkmark sales are clearly not enough.

Just goes to show that Elon is definitely not that intelligent, or more likely that his intelligent has long been overtaken by his ego. He got rich from PayPal and from that point onwards he was able to hire very clever people with his accumulated billions and go on to make even more billions. There reaches a point where if you are that rich, you don't need to be particularly clever to increase your wealth much further. Glad to see that he threw away so much money because he really is against free speech, even though he pretends to stand for it - only when you again with him.

[Kadal Ijo]

Many analysts criticize that advertising on Twitter is ineffective so it doesn't have a good impact on advertisers. Of course, we can see that Google continues to be profitable because Google's creative team presents advertisements so that many consumers feel satisfied when advertising on Google.

[karabiber]

Well, it seems there are too many young economists here, who are still going to school, and some are still earning extra income to survive the inflationary period. But made statements criticizing and disparaging the richest man in the world and his way of doing things. What are you thinking in your head? Can you do it like him? Have you made billions of dollars like him?

I don't need to make billions of dollars to criticize him, i might even be a very poor person. What is said here is that Musk is very indecisive and sometimes does not quite know what he wants to do. As long as we don't insult someone we can say criticism and we don't need to be on the same level as someone to criticize them. I just don't find the decisions Musk made after buying Twitter right. Elon is smart and has the ability to change the world with his actions. Their companies can change people's lives in the years to come. I respect a lot of his work but that doesn't mean i can't criticize him.

[Pejoh Asu]

Of course this is a lesson for Elon Musk who is too optimistic and ambitious, if ad sales continue to decline in the long run then the fate of Twitter could be like Yahoo which continues to lose money, Twitter must be more creative and able to take advantage of all the things that are trending, and change is needed to make advertisers are increasing on twitter.

[justdimin]

I wonder what Twitter will do to prevent this loss of value. Different things that Twitter will do will cause it to regain this value or have the opposite effect. They should pay attention to this. They can get ads they haven't received before to increase their ad revenue. Or, as you say, they can apply propaganda-style things by making an agreement with the governments.

Platforms can lose value, that's normal, but newsworthy when it comes to Musk. Even in such a situation, I don't think Musk will do any harm.

"Freedom of speech" was something they focused on as soon as Elon Musk took over, meaning people could say offensive stuff without getting banned, not straight up curse at someone, but they can point out their offensive thoughts, there is nothing illegal about saying "I do not like black people", that's racism, but not illegal to say.

However, when you do that, and when the website is filled with that, do you really think that people would be willing to spend their money on it? That's not cancel culture or snowflakes or libs or whatever, this is people deciding not to spend their money on a company anymore, and they have all the rights to do that. This is why twitter will keep going down as long as companies keep seeing it as a bad place to spend marketing budget on.

[kro55]

I have seen general improvements in Twitter though. Fewer bots, and more features. I think things will level out.

You win some, you lose some. When Elon took over Twitter, he made a number of drastic changes. Some of them were successful, while others were less so. Anyway, his plans are for the long term and therefore I don't think that he will be much worried about the temporary setbacks. The core point here is that Twitter retains a monopoly in its respective domain. There are simply no competitors for Twitter in the micro-blogging platform. And if the situation remains unchanged, the advertisers will return to Twitter sooner or later.

I agree with you, everything is temporary, and people are too hasty to conclude that Elon or Twitter has failed. Look at the previous companies he's run, they've all done really well, so I believe he'll know what to do with Twitter. He spent $44 billion to buy it, he's not a spender without a clear purpose. I am not in a hurry to judge others by their words or actions on social networks, but I just believe in their actions and the results they achieve. Sometimes they just joke around online, but when it comes to work, they are completely different.

[hatshepsut93]

On more related news, Musk once again broke twitter

Why Elon Musk has imposed reading limits that could cripple Twitter

He says that Twitter is being scraped by bots and it slows down the system, but users have found a bug that causes the client to fire unnecessary requests. Also, immediately after buying Twitter Musk was talking about some inefficient API use, even though the Twitter engineers publicly disagreed with him. A lot of them got fired. Seems like Elon decided to have his way and "fix" something that wasn't broken.

[AmoreJaz]

On more related news, Musk once again broke twitter

Why Elon Musk has imposed reading limits that could cripple Twitter

He says that Twitter is being scraped by bots and it slows down the system, but users have found a bug that causes the client to fire unnecessary requests. Also, immediately after buying Twitter Musk was talking about some inefficient API use, even though the Twitter engineers publicly disagreed with him. A lot of them got fired. Seems like Elon decided to have his way and "fix" something that wasn't broken.

well, he knows what he's doing so whatever the aftermath will be is his own choice, right? it is his company so he can do whatever he wants for his company. if goes bankrupt or people getting away from it, he will bear the consequences of his actions. anyway, he's the one putting money into this social media.
also, the current limitations in my opinion is quite valid. let's say you have verified acct, it now have a temporary limitation of 6k posts per day. now, as a user, can you really max out such limitation? you can barely reach the 100 posts/day. so the media is just exaggerating what musk is implementing on his platform. but if you will look at it, quite reasonable and there's so much leeway as i see it.


article

[Ayers]

On more related news, Musk once again broke twitter

Why Elon Musk has imposed reading limits that could cripple Twitter

He says that Twitter is being scraped by bots and it slows down the system, but users have found a bug that causes the client to fire unnecessary requests. Also, immediately after buying Twitter Musk was talking about some inefficient API use, even though the Twitter engineers publicly disagreed with him. A lot of them got fired. Seems like Elon decided to have his way and "fix" something that wasn't broken.

well, he knows what he's doing so whatever the aftermath will be is his own choice, right? it is his company so he can do whatever he wants for his company. if goes bankrupt or people getting away from it, he will bear the consequences of his actions. anyway, he's the one putting money into this social media.
also, the current limitations in my opinion is quite valid. let's say you have verified acct, it now have a temporary limitation of 6k posts per day. now, as a user, can you really max out such limitation? you can barely reach the 100 posts/day. so the media is just exaggerating what musk is implementing on his platform. but if you will look at it, quite reasonable and there's so much leeway as i see it.

article

I used to support Elon buying Twitter because it would become freer and the company's ad sales fell, or its value fell because we were in an economic crisis, so it's not too big of a problem. But constantly thinking of all sorts of ways to find ways to collect money from users like what is happening, I really disagree. But like you said, he owns Twitter, and he has total control over everything, if his policy succeeds, it's a win for him, and if it fails, he's the one who suffers. So let's see what happens next with this popular social network.

[icalical]

Well, the latest Twitter new update, limit their own user to use their platform, which means reduce their ad impression. Advertiser would never want that, they want the most and widest impression they can get. And because ad is their main source of income, then it's understandable that people are considering to sell their stock.

[bettercrypto]

If it drops by 59% as others say here, it is because from the very beginning of Elon Musk's purchase of Twitter, we have already heard that there will be a big change in its management and one of them is having a monthly subscription for everyone of users apps of twitter.

This is where I saw the problem, because if we think about how many people have spread twitter on social media and are used by millions of communities in different parts of the world, you suddenly charge users like that, of course what You expect everyone who has a subscription to agree, even I will find other apps like FB.

[Huppercase]

He says that Twitter is being scraped by bots and it slows down the system, but users have found a bug that causes the client to fire unnecessary requests. Also, immediately after buying Twitter Musk was talking about some inefficient API use, even though the Twitter engineers publicly disagreed with him. A lot of them got fired. Seems like Elon decided to have his way and "fix" something that wasn't broken.

I'm not his fan from day 1 and never liked his behavior since he became the sole owner of that micro blog. The limit thing is clear to everyone that Elon is only trying to make people subscribed to his $8 thing in favor of making more revenues. Remember that some money were borrowed in addition to what was use to purchase Twitter and they have deadline to pay back plus interest and the plan was to pay from the interest of the company, they also have staffs to settle and that is why I see this as a milking opportunity by Elon Musk. There is no way you will explain this in technical term to layman that they wouldn't see it as a business strategy but regardless of his tactics, people that are less interested will live and also reduce number of users.