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

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Quote from: alastantiger on July 05, 2023, 10:35:04 AM

Quote from: hatshepsut93 on June 05, 2023, 08:50:58 AM

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.

Elon is running Twitter like some sort of high school science project and we shouldn't be surprise with the numbers. Twitter is just like one of those toys you buy and play with when you are bored because for you it has no intrinsic value so you do with it as you please. Many people migrated from Twitter to some other platforms or just completely left.

Apparently he saw his numbers dwindling and had to hire someone else, well it isn't working out so well for him. He is rich and he is profiting from the government in one form or another. This is the thing I loved about Jack. He had principles and morals and stuck to it. Well, even if they go bankrupt and sell it, how are we sure that the next buyer won't be some government official masking as an entrepreneur.

I have my own opinion, in general, about the purchase of Twitter by Ilon Musk.
My guess is that "technological greatness" has already been achieved. Yes - there are powerful people and big money behind it. But. There is no "greatness" and no mechanism for managing and manipulating a large society. Max is well aware that the ambiguity of his person, does not allow in the real world to become an "idol", for many reasons. But he is well aware that large social networks are both an influence and a mechanism for "pushing" certain narratives into the masses, a large social network is a good mechanism to prepare, for example, for a political career. And much more.
And Twitter simply turned out to be the most "convenient" on the market to buy! And yes, this is Elon Musk's experiment to prepare for a larger release of global social networks as a mechanism to achieve other, not technological, goals ! My opinion is purely my own, I do not claim to be the only true one

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Quote from: hatshepsut93 on June 05, 2023, 08:50:58 AM

Quote from: NYtimes

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.

This is such a beautiful ending and a perfect example of how Elon is not any extra special kind of genius. He got lucky with his original Paypal investment, which as the biggest web based payment processor for such a long time was a license to print money. He then took the huge amounts he made from that company and was able to spend it on hiring many other super intelligence people in various fields, who then turned out actual useful products that made a lot more money. Unfortunately his ego grew so large and he cannot stand being insulted, he talked himself into paying twice the price he should have for Twitter and then tried his hardest to weasel out of it. Unfortunately he did not realize how powerful the business laws were where Twitter was incorporated, so he couldn't back out and has now run it into the ground.

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Quote from: coinerer on July 05, 2023, 03:35:06 AM

Quote from: _BlackStar on June 05, 2023, 11:50:57 AM

I'm not surprised by this news because basically some people also predict that Twitter will experience something like this because of the consequences of a shift in policy from the new owner. If Elon Musk really wants to go ahead and keep supporting Twitter - then he's probably going to be spending a lot of money in the next few years.

Elon Musk is a shrewd businessman and it is possible for him to position a company well, as he has done with Tesla, spaceX. Elon Musk is also called the PayPal Mafia because PayPal was the first project of Elon Musk's and several other successful businesses. So I don't think there will be any major damage to Twitter as long as Elon Musk is with Twitter. Twitter may face a temporary problem and their market value may decrease slightly. But this problem won't last long since Elon Musk bought Twitter he will take it far and it is possible for him to do one

I do not agree with you!
One side is the technological projects of Elon Musk. Where was the plan, from the birth to the actual product (we won't consider some "nuances" from reality now, ok ? )... The other side - when the halo squeezes the brain and the man decides that he is God, and can create and create, but completely forgets that he is a mere mortal with his own problems and begins to "rebuild the world". In this case, "Twitter. Unfortunately "shitting himself" with his innovations, he KILLS Twitter. Yes, there is still a loyal audience (me for example

), but it begins to dwindle and move to where it is as comfortable and convenient as on Twitter before Musk, and this flow will not dry up ! Moreover - if the "alternative Twitter" has at least 5% more features and conveniences - and the most loyal audience will leave Twitter. And that's what it's all about. I'm absolutely ready to quit "Twitter named after Musk" and move to an adequate platform, by the way, I'll drag my friends there too

Even if Musk gets his hands off the once great Twitter, Twitter will be VERY DIFFERENT, close to impossible, to get its image back. Too bad, but ... it happens ! And examples of mismanagement are many in history, Twitter is not the first and not the last !

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Quote from: hatshepsut93 on June 05, 2023, 08:50:58 AM

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.

Elon is running Twitter like some sort of high school science project and we shouldn't be surprise with the numbers. Twitter is just like one of those toys you buy and play with when you are bored because for you it has no intrinsic value so you do with it as you please. Many people migrated from Twitter to some other platforms or just completely left.

Apparently he saw his numbers dwindling and had to hire someone else, well it isn't working out so well for him. He is rich and he is profiting from the government in one form or another. This is the thing I loved about Jack. He had principles and morals and stuck to it. Well, even if they go bankrupt and sell it, how are we sure that the next buyer won't be some government official masking as an entrepreneur.

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Quote from: coinerer on July 05, 2023, 03:35:06 AM

Quote from: _BlackStar on June 05, 2023, 11:50:57 AM

I'm not surprised by this news because basically some people also predict that Twitter will experience something like this because of the consequences of a shift in policy from the new owner. If Elon Musk really wants to go ahead and keep supporting Twitter - then he's probably going to be spending a lot of money in the next few years.

Elon Musk is a shrewd businessman and it is possible for him to position a company well, as he has done with Tesla, spaceX. Elon Musk is also called the PayPal Mafia because PayPal was the first project of Elon Musk's and several other successful businesses. So I don't think there will be any major damage to Twitter as long as Elon Musk is with Twitter. Twitter may face a temporary problem and their market value may decrease slightly. But this problem won't last long since Elon Musk bought Twitter he will take it far and it is possible for him to do one

Musk has successfully led Tesla and SpaceX and PayPal gave him the nickname "PayPal Mafia." Impressive portfolio. Would you agree that the same man who can tweet market turbulence might also bring Twitter "fluctuations"? Remember: Elon Musk is more than a businessman. Scientist, inventor, and visionary. His obsessions include tech-heavy, space-faring projects. Twitter, a tech business, operates in social media. Musk may boost Twitter's market position, but there are risks. Leadership changes affect market values. Shareholders panicking over a lower value could trigger instability.

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Maybe we're not intelligent enough to understand what Mr. Mars is doing with the company and it will actually be worth at least $250 billion in the future (so he claims), but to me who looks at it from the sidelines it seems like he's deliberately trying to destroy the company. In the context of everything that has been going on in recent months and days, the competition is about to make the final blow, and we'll soon see if the birdie manages to recover after Threads is released from the bottle.

Quote from: https://edition.cnn.com/2023/07/04/tech/threads-app-meta-twitter-rival/index.html

Zuckerberg’s Meta, which owns Facebook and Instagram, has teased a new app that is set to take on Twitter by offering a rival space for real-time conversations online.
The app is called Threads and it is expected to go live Thursday, according to a listing in the App Store. The app appears to have many similarities to Twitter — the App Store description emphasizes conversations, as well as the potential to build a following and connect with like-minded people.

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Quote from: _BlackStar on June 05, 2023, 11:50:57 AM

I'm not surprised by this news because basically some people also predict that Twitter will experience something like this because of the consequences of a shift in policy from the new owner. If Elon Musk really wants to go ahead and keep supporting Twitter - then he's probably going to be spending a lot of money in the next few years.

Elon Musk is a shrewd businessman and it is possible for him to position a company well, as he has done with Tesla, spaceX. Elon Musk is also called the PayPal Mafia because PayPal was the first project of Elon Musk's and several other successful businesses. So I don't think there will be any major damage to Twitter as long as Elon Musk is with Twitter. Twitter may face a temporary problem and their market value may decrease slightly. But this problem won't last long since Elon Musk bought Twitter he will take it far and it is possible for him to do one

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From the Internet

"Musk closed free access to tweets, now you can see them only after logging in. So, according to the rules, Google started to remove Twitter from search. Already deleted 52% of content Without search traffic on Google Twitter will quickly die. That's what happens when a business is run by a stupid ignorant stiff."

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Quote from: Inwestour on July 03, 2023, 04:19:37 AM

This is not about post limits per day, but about viewing tweets per day. New users will be able to view 300 tweets per day, old users 600, and if you want more, then pay.

There was a lot of hype around this change. I've seen a lot of different "threats" even to leave the Twitter network, but I don't think it will be like that. It will probably be a bigger problem if a restriction is introduced on writing posts and retweeting. I am certainly convinced that this can only help in reducing spam.
What I'm interested in is, does anyone really read 600 tweets a day or do you at least know someone who does?

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Does it surprise anyone? Elon Musk is a unique man, of course, but that does not mean that everything he takes on turns into Paypal, Tesla or Space-X !
Plus some overconfidence and overestimation of his capabilities and understanding of another market - as a result, as they say "we have what we have"!
The saddest thing for the Twitter platform is that these processes can become INCREDIBLE, leading either to the actual closure of the project or attempts to resell it. But as they say "the spirit" of the project will remain, and it is unlikely it will be possible to revive it to its former level...

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Quote from: Unbunplease on June 05, 2023, 12:06:32 PM

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?

Exactly my thoughts. Musk's behavior on social media, particularly on Twitter, does sometimes appear impulsive and lacking a clear business strategy. It seems like he moves without a stable direction. This inconsistency can lead to confusion and speculation among observers, including whether his intentions are to intentionally disrupt Twitter.
One would wonder why he doesn't depend more on a group of knowledgeable advisors. It's appears that Musk likes to work alone or depends on a small number of advisors rather than a bigger team when making decisions. Regardless, he is the richest man in the world, and if that is what works for him, who are we to question? Lol!

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Quote from: AmoreJaz on July 02, 2023, 05:34:16 PM

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.

This is not about post limits per day, but about viewing tweets per day. New users will be able to view 300 tweets per day, old users 600, and if you want more, then pay.

Well, I'm not surprised, Twitter for Musk is just a business, and since he is a businessman, it was expected to receive such steps from him. Someone will not like it and leave twitter, but someone will choose to pay, and this will be enough to receive a very good income. In addition, if this does not work and there is a significant outflow of users, then these restrictions can always be removed, but I think that this will bring Musk the expected profit.

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Quote from: hatshepsut93 on July 02, 2023, 05:28:32 PM

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.

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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.

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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.

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Quote from: AmoreJaz on July 02, 2023, 05:34:16 PM

Quote from: hatshepsut93 on July 02, 2023, 05:28:32 PM

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.

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Quote from: hatshepsut93 on July 02, 2023, 05:28:32 PM

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

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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.

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Quote from: Sithara007 on June 12, 2023, 11:22:47 PM

Quote from: InfinityExists on June 12, 2023, 11:01:13 AM

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.

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Quote from: flyingcarpet on June 12, 2023, 08:20:25 AM

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.

Topic: Twitter ad sales down 59%, company valuation down 66% (Read 693 times)