Musk blames Twitter for falling ad market revenue

Printed Twitter logos are seen in this photo caption taken on April 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

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July 22 (Reuters) – Twitter Inc (TWTR.N) On Friday, Elon Musk blamed its ongoing battle to close its $44-billion acquisition and a weak digital ad market for a surprise drop in quarterly revenue.

The results come as Twitter is suing Musk for abandoning its offer to buy the company, and is gearing up for a legal battle over a trial that could begin in October. The uncertainty of the deal has worried Twitter’s advertisers and caused confusion within the company. read more

Advertising revenue rose just 2% to $1.08 billion, missing Wall Street expectations of $1.22 billion, according to Refinitiv IBES data.

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Total second-quarter revenue, which includes revenue from subscriptions, was $1.18 billion, compared to $1.19 billion a year earlier. Analysts were expecting $1.32 billion.

Twitter shares fell 3% in pre-hours trading.

Twitter said its net loss was $270 million, or 35 cents per share, compared with a profit of $65.6 million, or 8 cents per share, a year earlier.

Its adjusted 8-cent loss missed expectations for a 14-cent adjusted profit.

On Thursday, Snapchat parent Snap Inc posted weak results and declined to make a forecast, citing “incredibly challenging” conditions as advertisers cut spending. read more

Twitter and its peers, including Snap and Alphabet (GOOGL.O)Revenues rose last year as brands spent more on advertising online as they tracked the recovery from the pandemic.

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But inflationary pressures and fears of a recession this year have forced brands to rethink their marketing budgets.

Meanwhile, Gen-Z favorite TikTok and tech giant Apple Inc (AAPL.O)It gives users the choice to opt out of data tracking, gaining market share in the digital advertising space.

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Reporting by Nivedita Balu in Bangalore and Sheila Tang in Dallas; Editing by Soumyatheb Chakraborty and Nick Zieminski

Our Standards: Thomson Reuters Trust Principles.

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