This is a rhetorical question. It’s Elon Musk’s fault.
Twitter’s second quarter results missed analysts’ estimates, and the social media giant argued Elon Musk was partially to blame.
Twitter posted a net loss of $0.08 per share, compared to analysts’ expectations for a gain of $0.14 per share. Revenue fell 1.2% to $1.18 billion. Ad revenue rose 2.1% to $1.08 billion, well short of forecasts. Average monetizable daily active users (mDAU) increased 16.6% to 237.8 million, also fewer than expected.
The company said the decline in revenue reflected a slowdown in advertising associated with the macroeconomic environment, “as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
$44 Billion Deal
Tesla (TSLA) CEO Elon Musk and Twitter previously agreed on April 25 to the former’s $44 billion offer to take the company private, but since then the two sides have argued over Musk’s insistence on getting information about fake accounts. Musk announced on July 8 that he intends to terminate the deal, and Twitter sued in response. The case is set to go to trial in October.
Musk responded to Twitter’s claim that he had a role in the drop in revenue with a tweet, writing “I’m rubber, they’re glue.”
Shares of Twitter initially dropped on the quarterly report, but subsequently rallied in the afternoon to finish up 1%.