Twitter’s revenue dropped sharply in the most recent data, showing a possible soft boycott of the platform after its purchase by Tesla founder Elon Musk. However, a more detailed look shows that Twitter is likely in no financial trouble.
December 2022’s revenue figures were sharply negative for the social media site. Overall revenues dropped by 30% as Musk is paying off $13 billion in debt incurred by the purchase of the platform.
The Wall Street Journal reports that about 70 of the company’s 100 top advertisers have not advertised since Musk took over the app late last year.
Furthermore, the news comes with a serious negative impact on Twitter’s income stream. Advertising represents about 90% of the company’s revenue, which represented $4.5 billion in 2021.
Musk has created new revenue streams for the company, specifically by unveiling Twitter Blue, which allows for the use of a checkmark and editing tweets.
The new Twitter leadership attempted to cut costs considerably since the takeover, including cutting a number of the company’s personnel that Musk deemed as non-essential.
Despite the potentially negative news, Musk’s detractors likely did not receive the response they may have expected. After the cuts, the Twitter owner reported that the company is still breaking even.
Musk’s considerable success with companies such as SpaceX, PayPal and Tesla indicates that Twitter’s initial revenue changes likely are temporary.
Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn’t wish that pain on anyone.
Twitter still has challenges, but is now trending to breakeven if we keep at it. Public support is much appreciated!
— Elon Musk (@elonmusk) February 5, 2023
The tech mogul’s purchase of the social media giant was met with considerable criticism by those on the left.
Some in the media field went as far as opposing Musk’s purchase in fear that conservative ideas would soon stream across the platform.
Musk’s actions since the purchase did not quiet left-wing concerns. He released sensitive correspondence that showed close collaboration between Twitter’s administrators with the media, federal agencies and the Democratic Party.
Further investigation found the close relationship credible thanks to the files released by Musk.
Musk followed this by unsuspending a number of conservative and Republican-leaning Twitter accounts, including that of former President Donald Trump. The major changes by Elon Musk seem like they will continue to make headlines and shape the media landscape of the country.