X has lost 84% of its revenue since being sold to Elon Musk: He had insulted advertisers

12PUNTO FOREIGN NEWS

According to a published report, X generated $114 million in revenue in the third quarter of this year in the US, by far its largest market. This represents a 25% drop from the previous three months and a 53% decline compared to the same period the previous year. According to the last public figures before the acquisition by company owner Elon Musk, X (then known as Twitter) had $661 million in revenue in Q2 2022. When calculated with the effect of inflation, these figures show that X's revenue has fallen by 84%.

Since the company does not publish its financial results, no one knows how much longer X can survive. However, in November, Musk admitted that X could face bankruptcy due to an 'advertiser boycott.'

Since his last speech in November regarding the company's financial situation, Musk has made no statements about reaching a break-even point in cash flow, let alone achieving actual profit.

The US-based financial magazine Fortune, which reported on X's financial situation, wrote: 'This is unusual in itself for someone like Musk, who is not bothered by announcing goals so aggressively and unrealistically and failing to meet them repeatedly.'

Asset manager and president of Halter Ferguson Financial Bradford Ferguson, evaluating Fortune's report on his own YouTube channel, stated: 'He was probably a bit more optimistic in December 2022 and did not predict that the situation would get even worse.' 

MAY SELL COMPANY SHARES

With 2025 fast approaching and X's financial situation worse than ever, Ferguson fears that Musk may consider cashing out Tesla shares sooner or later.

Gary Black, founder and president of The Future Fund, said he agrees with the view that the risks of a share sale are increasing.

Long-time Tesla investor Black said in a post on social media: 'X will continue to bleed, and Elon will have to sell more Tesla stock at some point to cover the $1-2 billion annual deficit at X.'

When you tell your customers to go f—k themselves, then sue them when they stop advertising on your platform, it’s hard to be sympathetic. Advertisers have a right to place ads where they want and if it feels unsafe because of adjacency concerns for advertisers to place ads on X… https://t.co/RVu7rhXnTM

— Gary Black (@garyblack00) August 14, 2024

News Source: 12punto