Poor Results on Twitter as It Blames Elon Musk

Twitter fails to meet profit expectations and its revenues are falling due to “Elon Musk’s takeover offer”, as it described it

Twitter Inc. announced its second-quarter results that were below Wall Street analysts’ estimates in terms of profits, revenue and user growth, but Twitter shares closed up 0.8%.

Twitter’s adjusted loss of 8 cents per share during the second quarter was worse than analysts’ estimates, which did not exceed 14 cents per share, and revenue fell 1% year on year to reach $1.18 billion, also failing to meet expectations of $1.32 billion, which represents a growth of 10.5% year-on-year, and the difference between revenue and expectations (11%) is the worst in the history of the social media platform, as for the number of daily active users that generate revenue, the company registered 237.8 million users, compared to expectations of 238.08 million users.

The company blamed the decline in revenue on difficulties experienced by the advertising industry, which was caused by the surrounding economic environment, and stressed that the poor performance was also due to “the uncertainty around the pending acquisition deal by a subsidiary of billionaire Elon Musk”.

Twitter and other social media platforms that rely heavily on advertising have clearly suffered from economic challenges to their business, as advertisers have moved to reduce spending. To read more [Plans To Cut Hiring at Snap After Q2 Results].

Due to the pending acquisition by Musk, Twitter stated that it will refrain from providing expectations for the next third quarter, and added that expenses and costs it saw during the quarter increased 31% year-over-year to $1.52 billion, which drove the company to a loss of 8 cents per share, It is the first adjusted loss in two years and the second time that Twitter has recorded a loss in its history. Read more [Musk Cancels The Twitter Deal, Pushing its Stock to Crash].

Twitter scored an early victory Thursday when a Delaware district attorney ruled in favor of a five-day trial in October. Read more [Twitter Deal Case Ignited to Force Elon Musk to The Deal].

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