Tag: twitter

Twitter’s cash flow remains negative, Musk says, as ad revenue drops 50%

Elon Musk said on Saturday that Twitter’s cash flow remains negative, due to a nearly 50% drop in advertising revenue and a heavy debt load. Musk had previously said that he expected Twitter to reach cash flow positive by June.

“We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” Musk said in a tweet. “Need to reach positive cash flow before we have the luxury of anything else.”

Twitter’s advertising revenue has been declining for several quarters. In the first quarter of 2023, advertising revenue fell 19% year-over-year. The decline in advertising revenue is likely due to a number of factors, including the ongoing war in Ukraine, rising inflation, and the increasing popularity of other social media platforms.

Twitter’s debt load is also a major concern. The company has about $13 billion in debt, which it used to finance Musk’s acquisition of the company. Musk has said that he plans to reduce Twitter’s debt load, but it is unclear how he plans to do so.

The combination of negative cash flow and a heavy debt load puts Twitter in a precarious financial position. If Twitter is unable to turn things around, it could be forced to sell itself or file for bankruptcy.

What does this mean for Twitter’s future?

The news that Twitter’s cash flow remains negative is a major setback for the company. It is unclear how Twitter will be able to turn things around, and there is a real risk that the company could be forced to sell itself or file for bankruptcy.

Musk has said that he is committed to turning Twitter around, but it is unclear how he plans to do so. He has proposed a number of changes, including reducing the company’s debt load, making the platform more user-friendly, and cracking down on spam and bots.

However, it is not clear if these changes will be enough to save Twitter. The company is facing a number of challenges, including the decline in advertising revenue, the increasing popularity of other social media platforms, and the ongoing war in Ukraine.

It is too early to say what the future holds for Twitter. However, the news that the company’s cash flow remains negative is a major setback, and it is clear that Twitter is facing some serious challenges.

Twitter Becoming More Innovative! $300 billion Market Cap inside 10 Years!

I have found myself Tweeting a lot more over the past couple of months and getting more engagements and interactions on the platform. There seems to be something in the water at Twitter at the moment – as they seem to be going through a big change in innovation and launching more and more product (Twitter Spaces is a great example of this).

I would love to see Twitter Space become its own standalone app (as currently it is quite hard to find who is talking, when and where). Twitter also recently acquire a Newsletter company, so it seems like they are now trying to make a conscious effort to push through monetization for creators in all shapes and forms.

Great moves overall… Im very bullish on Twitter over the next 10 years.

(at the time of writing this Twitter has a $48 billion market cap with $3.7 billion in revenues over the last 12 months). In 10 years I can easily see Twitter being a $300 billion market cap company.