More Trouble For Elon Musk’s X App As Ad Sales Projected To Witness $2.5 Billion Decline

It’s been a bumpy road for Elon Musk’s popular social media app X, ever since the tech entrepreneur took over its ownership last year.

The latest report from Bloomberg News is shedding light on how the tech giant’s ad sales for 2023 are projected to experience an estimated decline of $2.5 billion. And that’s clearly not going to make Musk and his top executives happy, considering how much effort was made to bring back advertisers on the app.

A whole list of organizations opted to pause their ad spending on X including the lights of Walt Disney, Comcast, IBM, and others. The hit for Musk and his team was major and the fact that it was the aftermath of one of Musk’s irrational decisions makes it a harder pill for the billionaire to swallow.

The Tesla and SpaceX owner was slammed for agreeing with a controversial post that was published on X in regards to the Jews inciting hatred against the Whites.

One of the top leads for business operations at X went on to add how such a report presented a very fuzzy view of the whole business as media outlet Bloomberg failed to outline how the sources were unreliable and therefore the data they were presenting was not only misleading but inaccurate.

Without comprehensive details, X argues that making such claims is out of the question and solely designed to further damage the firm’s already troubled reputation.

The revenue figures at X in terms of advertising since the past four quarters totaled a figure of $4.7 billion as per the latest LSEG data. This covered the second part of 2021 and the first part of 2022.

The organization is believed to produce a little more than $600 million in terms of ad revenue during each of those respective first three quarters for 2023 as it expects a mirroring performance during that current period, the report went on to reveal after citing sources that were familiar to this matter.

Ever since Elon Musk took over Twitter in October of last year, the monthly figures for revenue generated through advertising declined by nearly 55% YOY as per an article in Reuters which attained data through third-party sources during that moment in time.

For those still wondering why this news is so concerning, well, X generates nearly 75% of its overall revenue through the likes of advertising sales. This year, the company’s executives hoped to attain a target of $3 billion in terms of revenue through the likes of advertising and subscriptions for this year.

Clearly, that will not be the case as we wind up in 2023 and gear up for the upcoming new year as figures are falling short of the target as further delineated in the report.

Let’s not forget how Musk announced that the company’s cash flow continues its negative streak due to the whopping 50% drop in terms of advertising revenue as well as the huge debt load.

Photo: DIW - AIgen

Read next: New Filing Raises The Curtain On Meta Platforms' Use Of Pirated Books For AI Model Training
Previous Post Next Post