- Spending on digital advertising has experienced a continuous increase in recent years.
- In 2020, it amounted to 355,000 million dollars and forecasts suggest that this trend will continue until it exceeds 490,100 million in 2025.
- However, there will be a plateau due to the economic crisis and the expected recession, which makes companies spend less on advertising.
In the midst of the legal dispute with Elon Musk over the frustrated purchase of Twitter, the social network released the results of its second fiscal quarter.
As expected, they were not good.
That’s right, Twitter recorded a drop in revenue this Friday, July 22, amid fierce competition in the weakened digital advertising market, which Apple and TikTok are also part of.
If the dispute with the founding tycoon of Tesla is added to this, the picture becomes even darker for Twitter.
According to the company’s report, it reported fiscal second-quarter revenue of $1.18 billion, down from $1.19 billion a year earlier.
The analysts of wall street they were much more optimistic and expected $1.32 billion.
As a result, Twitter shares fall in the premarket.
Twitter’s full Q2 financial report at PDF.
Twitter, like Snap, concerned about the drop in investment in digital advertising
Twitter’s financial result is known hours after Snap Inc, the parent company of the Snapchat social network, also released meager results.
Even Snap declined to make a forecast for the remainder of 2022, citing “incredibly challenging” conditions as advertisers are cutting back on ad spending.
Snap posted the lowest quarterly sales growth in its history, sending the firm’s shares down more than 20 percent in trading. premarket.
Turning to Twitter, the company reported a loss of $270 million, or 35 cents a share, compared with a year-earlier profit of $65.6 million.
The number of daily active Twitter users increased from 229 million (in the first quarter) to 237.85 million.
before the call Musk FightTwitter was working to achieve three main goals by the end of 2023:
- Exceed $7.5 billion in annual revenue
- Reach 315 million daily users
- Doubling the rate at which it produces new technology
All in all, Musk’s (albeit unsuccessful) bid for Twitter helped keep the social network’s share price fairly high amid sell-offs in tech stocks.
Twitter’s share value is down 10 percent in 2022, against a more than 21 percent decline in the Nasdaq Composite Index, which is home to many tech firms.
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