O twitter on Friday (22) reported a surprising drop in quarterly revenue, which it attributed to uncertainties related to the acquisition of the company by Elon Musk and the weakening of the digital ad market.
Shares of the social network were down 3% in the premarket.
The company reported revenue of $1.18 billion in the second quarter, compared with $1.19 billion a year earlier.
Analysts, however, had expected revenue of $1.32 billion, according to data compiled by Refinitiv’s IBES.
O twitterwho sued Musk after the billionaire announced he was pulling out of a $44 billion deal to buy the company, said ad revenue rose just 2% to $1.08 billion.
The company’s results come after Snap, Snapchat’s parent company, announced weak results and did not release projections, citing “incredibly challenging” conditions as advertisers slashed spending.
O twitter and its tech peers, including Snap and Alphabet, saw a surge in revenue in 2021, with brands heavily raising their stakes in online advertising as they rebound from the height of the pandemic.
But inflationary pressures and fears of a recession have forced advertisers to rethink their 2022 budgets.
At the same time, TikTok and tech giant Apple are taking market share in the digital ad space, increasing competition.
Source: CNN Brasil
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