Topic: Twitter ad sales down 59%, company valuation down 66% - page 2. (Read 612 times)
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.
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.
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.
https://www.nytimes.com/2023/06/05/technology/twitter-ad-sales-musk.html
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.
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.
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.
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.
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.
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 have seen general improvements in Twitter though. Fewer bots, and more features. I think things will level out.
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?
https://www.nytimes.com/2023/06/05/technology/twitter-ad-sales-musk.html
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.
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.
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.
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.
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.
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.I think most advertisers will come back. Let's not forget that Twitter has no competitors.
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.
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.
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.
Not at all surprised with this new. It was never a vision for Elon Musk and whatever business idea he had. He bought Twitter literally out of his wish because he thought he could play around it and create another income source. The problem/spark started when Elon became tweet lord Back in the year and during DOGE trivia. He saw how he could move the entire Share price for anything if he just tweets about it. Moreover, he thought that if just buys entire Twitter and play around it for moving such prices of stocks and god knows what devil plan he had. This is my theory but not sure who would agree upon it. What do you guys think?
He's a businessman, I don't think he has such a narrow vision. spending $ 46 billion buying a social network just to manipulate Dogecoin? Doge's market cap is less than $10 billion, and how much will he make even if he holds the entire supply of Doge in his hand? even ordinary people like us can calculate this simple profit problem. Do you think he is stupid to spend $46 billion just to do it? Losing in business is normal, why many people do not understand. In a crisis economy, many businesses failed miserably, and even some banks went bankrupt, TW has stood firm until now, and it is a success.
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.
Considering how belligerent the guy is and his business practices, there's no doubt he'll either do something like this that will shoot the foot of his other companies, or he's just gonna pass the problem to someone else. There's been talks about it anyways, so that seems to be the most obvious answer as of now. In any case, this just goes to show how Twitter was shitty as it is now, riddled with all cryptobros, and the promise of bots being removed in the timelines of people only granted to those who paid 8 dollars per month instead of it actually being for everyone, among many other broken promises that Elon Musk made as he was appointed CEO of twitter. He lost his internet rep too and now everyone (except his meat riders) hates him lmao. What a time to be alive. 
Elon musk is trying to run twitter Like other paying social media platforms. He just announced recently that content creators will have to get paid for the ads being attached under their comment boxes. So, he thinks with that more content creators will have to flock around twitter and it'll also increase the reach of Ads in the platform. Twitter users dropped drastically when Elon Musk started selling verification badge to everyone. The whole concept of that badge faded out, and it affected Twitter's growth. However, he is yet to master his new craft and soon his policies will begin to fit in and twitter will grow again.
Quote
According to Travis Brown, there were 444,435 paying Twitter Blue subscribers by end of March 2023. That is around $42 million per year.
Reminds me of a little study I did years ago on Newspaper advertising, after all these years the same rule of commerce over consumer direct revenue would seem to apply to even the cutting edge tech development.
Adverts are king, nice he got some revenue but this ship sails or sinks on its ability to integrate advertising profitably. They thought the same of Facebook at one time, on IPO it halved in value on doubts any mobile usage could work out but it was not well founded. If Twitter has users it should be ok longer term in much the same way, equity values arent hard ground to judge actual viability on.
To be fair, in United States the term freedom of speech has always been part of the dictatorship because it always comes down to one definition: "you are free to say whatever you like as long as what you say doesn't have any conflict with the regime's interest". It is not up to Musk or anybody else either, it is the US regime's decision considering how US sees the internet as a whole, a military ground and it is even under the supervision and control of the armed forces of US (under Department of Defense) and even has a 4-star general in "control" of it.
Yes, the meaning of freedom of speech is to talk anything about whatever is allowed, if your speech is against one specific idea, then you are evil, should say that, etc. The only place where someone has freedom of speech is his mind. Freedom of speech doesn't exist, has never existed and will never exist because it's impossible in humanity. An anarchy can't exist among social animals, we always try to centralize things, that's the reason.To be fair that too is the US regime's new policy. The shift happened in the past year with mass advertising of AI as something "dangerous" and there has been lots of attempts to "discourage others" from doing any kind of development in this field while US does it under the radar to try and get ahead since US has fallen far behind in AI technology specially for military applications.
If we keep in mind how OpenAI promotes the capabilities of an AI and how there are rumors that real AIs are far better than publicly available ones, then it looks a little bit doubtful for me how many killed by an AI accidents we have in the military. I just don't know what's going on in this case but the game is very interesting (not desirable though).
You are right! There is a hope that he wants to keep free speech on Twitter but there is another problem, billionaire and free speech? A billionaire that pumped and dumped market for personal growth and made people buy Dogecoin? A real shitcoin? .
To be fair, in United States the term freedom of speech has always been part of the dictatorship because it always comes down to one definition: "you are free to say whatever you like as long as what you say doesn't have any conflict with the regime's interest". It is not up to Musk or anybody else either, it is the US regime's decision considering how US sees the internet as a whole, a military ground and it is even under the supervision and control of the armed forces of US (under Department of Defense) and even has a 4-star general in "control" of it.His intention was the development of an AI and now he says that it's a threat,
To be fair that too is the US regime's new policy. The shift happened in the past year with mass advertising of AI as something "dangerous" and there has been lots of attempts to "discourage others" from doing any kind of development in this field while US does it under the radar to try and get ahead since US has fallen far behind in AI technology specially for military applications. 
Shareholders of tesla or spacex can't be unhappy because he can't use directly their money, he would have to either sell his shares to get that money, or he would be paid basically, in all cases the money is his, he could buy worlds biggest building, or he could spend it on twitter, it's his choice.
However, I agree that him leaving makes more sense, he could just sell to someone else and that person could make it a lot more interesting once again. He had some ideas about what he will do with twitter when he gets it, he did those, and people disliked it so there is no turning back from that. If his ideas were to be liked then he would have been able to make a good amount of money from it, but they weren't so there is no reason why he should keep running it.
It's true that he failed miserably in this, he is definitely a great businessman but he couldn't manage this one the way he might have wanted or expected from himself and people expected more from him too but he couldn't work up to the expectations of himself and the people. As you said, he probably should just give up at this point because the value of Twitter has dropped significantly since he bought it.However, I agree that him leaving makes more sense, he could just sell to someone else and that person could make it a lot more interesting once again. He had some ideas about what he will do with twitter when he gets it, he did those, and people disliked it so there is no turning back from that. If his ideas were to be liked then he would have been able to make a good amount of money from it, but they weren't so there is no reason why he should keep running it.
I don't know why but it just feels like he has earned a lot of hatters after buying Twitter with whatever he did, maybe he didn't really plan everything well and that is the reason why things didn't work out for him but something totally went off for him and this business from the beginning.
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