Twitter’s second-quarter results were well below expectations. This disappointment is due, according to the social network, to “headwinds”, in particular, the uncertainty associated with its potential takeover by Elon Musk.
According to a press release published on Friday, the turnover of the group, which is trying to force the entrepreneur to fulfill his obligations in court, has decreased over the year (-1%). This decline is attributed to “headwinds” in the advertising sector, concerns affecting the economic situation, as well as “uncertainty associated with the ongoing acquisition of Twitter” by Elon Musk.
The number of so-called “monetizable” daily active users, i.e. those who may be exposed to advertising on the platform, increased by 8.8 million, less than analysts expected, to 237.8 million. Amid tightening credit conditions and the economic downturn companies whose model is completely based on advertising are suffering from reductions in advertising budgets.
Investors believe the company has regained control
In addition to the unfavorable economic situation for the entire sector, Twitter is also weakened by the saga of its hypothetical takeover by Elon Musk. After the contractor’s refusal, in early July, the case moved to a legal basis, where the leaders intend to ensure that the billionaire is forced to acquire Twitter. On Tuesday, a special court judge in Delaware (Northeast) ordered a tense trial over five days in October. Thus, the magistrate granted the request of Twitter, which called for an accelerated procedure to limit the damage from this saga to the group, and rejected, on the other hand, the arguments of Elon Musk’s lawyers that the debate would not be open until 2023. .
The businessman accuses Twitter executives of lying about the proportion of automated accounts and spam (ads and spam) on the platform, and of not providing him with enough data to verify. The Blue Bird group disputes these claims and accuses Elon Musk of using them as a distraction.
Many investors believe that Twitter has regained control, allowing its stock price to recover. It is now at the same level as on the eve of the announcement, on April 4, of Elon Musk’s share in the capital, which is the first step before submitting an offer for the entire company ten days later. After the release of quarterly results, the title still fell more than 2% in electronic trading before the opening of the New York Stock Exchange.