Tech

Twitter revenue slumps amid weakening digital ad market amid legal battle with Elon Musk


Twitter on Friday posted an unexpected drop in revenue amid stiff competition between Apple and TikTok in a waning advertising market, as the company ignited a legal battle with Elon Musk over the settlement. his $44 billion (about 3,37,465 crore) acquisition agreement.

The company reported second-quarter revenue of $1.18 billion (about Rs 9,400), compared with $1.19 billion (about 9,500 crore) a year earlier.

According to Refinitiv IBES data, analysts were expecting $1.32 billion (about Rs 10,500).

Results come after Snapchat parent Snap posted poor results and declined to make forecasts, citing “extremely challenging” conditions as advertisers cut spending.

Meanwhile, Facebook owner Meta . PlatformGoogle owner Alphabet and other companies that sell online advertising lost about $80 billion (about 6,39,324 crore) of combined stock market value on Thursday after Snap posted poor quarterly results and warned of an uncertain outlook.

Affected by a weakening economy, increased competition from TikTok and recent privacy changes on the iPhone, Snapchat owners missed their second-quarter revenue target and warned that “future visibility remains extremely challenging.”

Its shares tumbled 26%, bringing Snap’s loss in 2022 to more than 70%.

With Wall Street already worried about a potential recession, the Snap report also triggered a sell-off among rival internet ad sellers. Meta is down 5% in extended trading, while Alphabet is down 3% and Pinterest is down 7%.

With Twitter suing Elon Musk to force the billionaire to fulfill his April promise to buy Twitter for $44 billion (about Rs 3,37,465), many investors see Twitter’s stock as a bet on the outcome. the outcome of that upcoming legal battle, and is less of a reflection of the company’s current fundamentals.

© Thomson Reuters 2022




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