The news of Twitter’s latest financials has been making the rounds lately. According to reports, the tech giant’s revenue and earnings fell approximately 40% shortly after its one of the largest shareholders, Elon Musk, opted to buy out the remaining shares in the company. This took place in the first quarter of 2021 and the losses primarily came from advertising, which accounts for nearly 70% of total revenue.
Elon Musk’s buyout of Twitter has been both controversial and seen as a significant event in the tech world. After all, the social media giant has over 330 million daily active users and is considered to be one of the world’s most influential communication platforms.
Despite the drop in revenue and earnings, Twitter still has a lot going for it. For instance, the company’s user base continues to grow and it remains an attractive platform for advertising. In addition, the company has built a comprehensive set of tools for developers and businesses.
However, it remains to be seen how the social media giant will respond to the drop in revenue and earnings post-Musk Buyout. It is likely the company will undergo a restructuring process in order to cut down costs and focus on regaining the trust of investors and customers.
Furthermore, it has been speculated that the company might shift to a subscription-based model which could help to boost revenue. However, this move might attract some criticism from users who have grown accustomed to a free basic service.
Only time will tell if Twitter can recover from the 40% plunge in earnings and revenue. At the same time, it might be a good time for investors to start considering the potential of the company. Although its share price took a dip, it could still find some solace in the fact that it remains one of the most influential social media platforms in the world.
