Elon Musk says a 50% decrease in Twitter advertising revenue will cause negative cash flow

Elon Musk is facing a bad situation as the owner of Twitter, and while his 44 billion dollar investment on Twitter has not yet come to fruition, Meta Company introduced the Trades application as a competitor to Twitter. Trades has a big advantage because of its integration with Instagram. Instagram has more than 1 billion monthly active users, and a large number of them have gone to Twitter.

In a tweet today, Musk released other bad news. He said: “We still have a negative cash flow, the main reason for which is a 50% decrease in advertising revenues and heavy debts. “We have to achieve positive cash flow before anything else.” A negative cash flow means more cash is flowing out of the business.

This may not be good news for Twitter advertisers. It seems that the changes made by Musk on Twitter have cost the company. Musk recently limited the number of tweets users can read in a day, much to the displeasure of users. These instabilities will certainly cause advertisers to withdraw. However, Musk said in April that advertisers are coming back to Twitter and that Twitter’s cash flow will soon turn positive. But we see that this has not happened yet.

According to the Sensor Tower report, Twitter’s advertising revenue in the first two months of this year dropped by 89% to $7.6 million. This figure is very small compared to the $71 million that Twitter’s top ten advertisers spent on advertising between September and October of last year, before Musk bought Twitter.

Source: Phonearena