Twitter reported a staggering decline in its revenue as the social media giant gets into the legal tussle with the world’s richest man, Elon Musk.
Twitter share down by 12% over past 6 months
According to the report, Twitter’s revenue dropped from last year’s $1.19 billion to $1.18 billion. However, it also fell short to satisfy the average analyst estimate of $1.32 billion. The social media platform reported a loss of around $270 million.
Twitter’s share is trading at a price of $39.52. It has registered a surge of over 12% in the last 6 months. Meanwhile, it is trading lower by 43% per share over the past 1 year. As per the report, its share price has dropped by 35 cents a share compared with its year ago earnings.
It should be noted that the social media giant’s daily active users have surged to 237.8 million from 229 million in the first quarter. The report mentioned that Earlier Twitter withdrew its goals and outlooks and it will not provide forward looking guidance.
However, before suing Elon Musk for abandoning the $44 billion deal, it was working to achieve $7.5 billion in annual revenue, breach 315 million daily users and increase the speed of producing new technology by the end of 2023.
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Elon wants to postpon legal battle
Delaware Chancery Court’s chief judge granted the social media platforms’ appeal to fast track its case against Musk. It is being reported that a 5 day trial is set up in October. However, Tesla’s Chief’s lawyer opposed this case completely and argued that the proceedings should take place by the end of February’s second week.
Meanwhile, Musk mentioned that he backed out from the deal due to the lack of faith in Twitter’s report. The social media giant reported that less than 5% of its monetizable daily active users are fake accounts or spam.
However, Musk’s bid announcement helped the Twitter price surge when the company was facing a major sell off.
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