Twitter’s second-quarter results were significantly below expectations. This disappointment is due, according to the social network, to “headwinds”, in particular the uncertainty linked to its potential takeover by Elon Musk.
The group, which is trying to get the entrepreneur to keep its commitment in court, has seen its turnover decline over one year (-1%), according to a press release published on Friday. This decline is attributed to “headwinds” in the advertising sector, to fears weighing on the economic situation, but also to “uncertainty linked to the ongoing acquisition of Twitter” by Elon Musk.
The number of so-called “monetizable” daily active users, i.e. who can be exposed to advertising on the platform, increased by 8.8 million, less than expected by analysts, to reach 237.8 million. In an environment of tightening credit conditions and an economic slowdown, companies whose model is entirely based on advertising are suffering from shrinking advertiser budgets.
Investors consider that the company has regained control
Beyond an unfavorable economic situation for the entire sector, Twitter is also weakened by the saga of its hypothetical takeover by Elon Musk. After the renunciation of the contractor, at the beginning of July, the file moved on the legal ground, where the leaders intend to obtain that the billionaire is forced to acquire Twitter. On Tuesday, a judge from a specialized court in Delaware (northeast) ordered a tight trial over five days in October. The magistrate thus granted Twitter’s request, which called for an accelerated procedure to limit the damage of this saga on the group, and dismissed, on the other hand, the arguments of Elon Musk’s lawyers, in favor of the debates not s not open before 2023.
The businessman accuses Twitter executives of lying about the proportion of automated accounts and spam (ads and unsolicited messages) on the platform and of not providing him with enough data for verification. The group has the blue bird disputes these assertions and accuses Elon Musk of using them to create a diversion.
Many investors believe that Twitter has regained control, which has allowed its share price to rebound. It is now at the same level as on the eve of the announcement, on April 4, of Elon Musk’s stake in the capital, the first step before the filing of an offer for the entire company, ten days later. After the publication of quarterly results, the title nevertheless fell by more than 2% in electronic trading prior to the opening of the New York Stock Exchange.