In the second quarter of this year, Twitter recorded results much less than expected, which the social network attributed to the unfavorable context due to the uncertainty that prevailed in its sale to billionaire Elon Musk, and announced a 1% decline in its business, and incurred a net loss of $ 270 million.
Sharjah 24 – AFP:
Twitter announced that it had recorded results in the second quarter of this year, much less than expectations, and the social network attributed this to the unfavorable context due to the uncertainty over its sale to billionaire Elon Musk.
The group, which is trying to compel Musk to maintain his commitment to buy it, witnessed a decline in its turnover over a year by 1%, recording $1.18 billion, and incurred a net loss of $270 million, according to a statement issued on Friday.
Losses per share, an indicator that Wall Street closely tracks, were nearly three times what analysts had expected.
This decline is due to “headwinds” in the sector, and concerns over the economic situation, but also to “the uncertainty regarding the ongoing acquisition of Twitter” by Elon Musk.
With tighter credit conditions and an economic slowdown, companies whose model depends entirely on are suffering from shrinking advertisers’ budgets.
“Snap” was the first social network to announce a larger loss than expected, and revenues below expectations, which caused its shares to decline by more than 30% Friday in the stock exchanges before the opening of the New York Stock Exchange.
However, analysts welcomed the increase in the number of daily active Twitter users, who can provide income to the network, that is, they watch ads on the platform, by 8.8 million users, for a total of 237.8 million.
Apart from the unfavorable economic situation for the entire sector, Twitter’s decline is also due to the exciting chapters of Elon Musk’s acquisition of the network.
After the billionaire withdrew from the deal at the beginning of July, the file moved to the judiciary, as network managers seek to obtain an order to compel Musk to acquire Twitter.
On Tuesday, a judge from a specialized court in the state of Delaware (northeast) ordered a trial over five days in October.
Thus, the judge agreed to Twitter’s request, which called for quick action to limit the damage to the network as a result of this long series, and in turn rejected the arguments of Elon Musk’s lawyers, who demanded that discussions not be opened before 2023.
