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    Musk says a 50% drop in ad revenue for Twitter is causing negative cash flow

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    Musk says a 50% drop in ad revenue for Twitter is causing negative cash flow
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    The unhealthy information retains piling on for Twitter proprietor Elon Musk. His $44 billion funding in Twitter is simply not understanding but and Mark Zuckerberg’s Meta is signing up subscribers for newly minted Twitter rival Threads at a speedy tempo. Threads has a large benefit due to Thread’s Instagram integration. New Threads subscribers should have an Instagram account to hitch; Instagram has over 1 billion month-to-month energetic customers  and a massive variety of that platform’s subscribers will open a Threads account, a course of that is fast and straightforward to do.

    Today, Musk revealed some extra unhealthy information in the type of a tweet that stated, “We’re nonetheless negative cash flow, on account of ~50% drop in promoting revenue plus heavy debt load. Need to succeed in optimistic cash flow earlier than we now have the luxurious of anything.” Negative cash flow means precisely what it feels like. More cash is leaving the enterprise than is coming into it. On the opposite hand, he additionally stated yesterday that it “Looks like this platform might even see all-time excessive machine person seconds utilization this week.”

    Twitter proprietor Elon Musk passes alongside some unhealthy information

    Advertisers may not be proud of the mess that Musk has created at Twitter as he monetized verification checkmarks and saved reversing firm coverage. He additionally put a cap on the variety of tweets customers can learn in a day solely to boost that cap hours later. It is this type of instability at Twitter that has advertisers pulling again. Back in April, Musk stated that advertisers had been coming again and that cash flow would quickly flip optimistic. So far, it hasn’t. At the time, Musk stated, “Almost all of them have both come again or stated they’re coming again.”

    According to app analysis agency Sensor Tower, throughout a two-month interval earlier this 12 months, Twitter’s promoting revenue plunged by 89% to $7.6 million. Compare that determine to the $71 million that the highest ten Twitter advertisers spent on adverts from September to October of final 12 months simply earlier than Musk’s acquisition of the platform.
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