Twitter’s ad revenue in freefall, Elon Musk warns of financial trouble
Elon Musk has raised concerns about Twitter’s ongoing financial struggles, highlighting that the company continues to spend more money than it generates. In an early morning tweet on Saturday, the billionaire pointed out that Twitter is grappling with a persistent negative cash flow issue, primarily caused by a drastic 50 percent decline in advertising revenue and a burdensome debt load. Musk emphasized the need for the company to achieve positive cash flow before pursuing other endeavors.
Interestingly, Musk’s admission coincides with the initiation of Twitter’s ad-revenue sharing program, which recently started compensating certain creators, including a few influential figures from the far-right. On Friday, Musk also predicted that the social media platform could witness a significant surge in user engagement, potentially reaching an all-time high in device user seconds usage during the week. Additionally, he mentioned that the majority of advertisers who had initially departed from the platform following his acquisition in October had either returned or expressed their intention to do so.