Revenue at Twitter has significantly decreased since Elon Musk took control last year. Reports suggest that since Musk’s takeover, more than 500 of Twitter’s advertisers have stopped spending money there. The report also notes a 40% decrease in daily revenue from the social media company on January 17 compared to the same day last year. The technology newsletter Platformer first reported the drop in revenue on Tuesday.
Corporate advertisers leaving the platform due to Musk firing thousands of workers and rushing a paid verification feature that led to scammers impersonating businesses on Twitter may cause the revenue decline. The software and server teams at the social media company will continue to be under Musk’s leadership, despite his recent announcement that he will step down as CEO of Twitter.
This move is unlikely to change much, as Musk still maintains a high degree of control over the product, and given that he owns Twitter, he may still retain direct control over the social networking site.
Twitter has had a tumultuous time since Musk’s takeover, and this revenue drop reflects the instability and uncertainty surrounding the platform. Though it is unclear what the future holds for Twitter, it is obvious that the platform is dealing with some serious difficulties.
The social media platform recently announced that it would relax its 2019 ban on political advertisements and allow “cause-based ads” in the United States, aligning its ad policy with TV and other media outlets. It remains to be seen how the platform will change and whether it will help Twitter get things back on track.
