The IMF wants to take greater account of the gaps between men and women

NEW YORK: Twitter posted quarterly results below expectations on Friday, a mistake it attributed, in part, to uncertainty about its potential takeover by Elon Musk.

The group, which is trying to convince the entrepreneur to keep his commitment in court, has seen its turnover decrease in one year (-1%) to 1.18 billion dollars.

It is also back in the red, with a net loss of $ 270 million, according to a statement released on Friday. Reported per share, an indicator closely followed by Wall Street, the loss is nearly three times what analysts expected.

This decline is attributable to “headwinds” in the advertising sector, fears that weigh on the economic situation, but also “uncertainties related to the ongoing acquisition of Twitter” by Elon Musk.

“Twitter is on a rowboat in the middle of a storm,” commented Jasmine Eenberg, an analyst at Insider Intelligence, who recalled that the group was “used to poor performance”.

In a context of tight credit conditions and an economic slowdown, companies whose model is entirely based on advertising are suffering from the shrinking of advertisers’ budgets.

On Thursday Snap had thus opened the ball of social media and recorded a greater loss than expected and a turnover lower than expected, which in the Friday session alone made it lose more than 39% on the stock market.

On the Twitter side, however, analysts welcomed the 8.8 million increase in the number of daily active users called “monetizable”, ie exposed to advertising on the platform, for a total of 237.8 million.

“It’s better than feared and the numbers remain relatively strong considering the current environment,” said Dan Ives, of Wedbush Securities, in a statement.

“Compared to Snap’s nightmare, we see that the announcement has not collapsed,” added the analyst.

Against the flow of other social networks, which rolled on the stock market on Friday, Twitter’s share closed with 0.81%.

The shadow of the moss

Beyond an unfavorable economic situation for the entire sector, Twitter is also weakened by the saga of its hypothetical acquisition by Elon Musk.

After the contractor renounced, in early July, the file moved to legal ground, where the top management intends to have the billionaire be forced to acquire Twitter.

On Tuesday, a judge in a specialized court in Delaware (northeast) ordered a tight five-day trial in October.

The magistrate thus accepted Twitter’s request, which asked for an accelerated procedure to limit the damage of this saga on the group, and instead rejected the arguments of Elon Musk’s lawyers, in favor of the debates that will not open before 2023 .

The businessman accuses Twitter executives of lying about the proportion of automated and spam accounts on the platform and not providing them with enough data for verification.

The group with the blue bird disputes these claims and accuses Elon Musk of using them to create a diversion.

“The results (released Friday) provide further evidence that Elon (Musk) negatively impacted the company’s fundamentals, which should strengthen Twitter’s position in court,” Angelo Zino said in a CFRA Research statement.

Many investors believe Twitter has regained control, which has allowed its share price to rebound.

It is now out of action on April 4, the day before the announcement of Elon Musk’s stake in the capital, the first step before filing an offer for the entire company, ten days later.

However, the social network “is now in the unenviable situation of having to convince advertisers that its advertising activity is solid regardless of the outcome of its legal battle with Musk,” explained Jasmine Eenberg.

As with the first quarter release, Twitter did not hold the traditional conference call on Friday to present the results.

Leave a Comment