Ever since Twitter was taken over by Tesla founder Elon Musk, the company is facing deep trouble. The latest reports that the micro-blogging platform is under negative cash flow because the overall advertising has dropped by half. Musk revealed that the company is still under negative cash flow because of a 50% drop in advertising revenue coupled with a heavy debt load. He added that Twitter should reach the positive cash flow milestone before ultimate enjoyment.
Musk had been trying hard to convince advertisers about the dismissal of top executives, widespread layoffs and content moderation policies. NMusk had restored former US President Donald Trump’s account and several others, who were suspended by the previous regime. Musk also introduced drastic changes to the verification policy by introducing Twitter Verified module, where any user can get Blue tick mark by paying the required amount.
Musk recently revealed that several advertisers returned back after the commitments made by the company. Musk also hired a full-time CEO Linda Yaccarino, who worked with NBCUniversal and has a deep friendly relationship with advertisers. Recently, Twitter imposed severe restrictions limiting access to Tweets for verified and non-verified users. The move is to prevent unauthorized scraping of potentially valuable data.
Twitter is facing a rough time now after the launch of Threads by Meta. The launch of Threads app is a potential threat to Twitter. However, the Threads app is still in its infancy and we can’t predict its future. However, Meta claims that the app got record signups and the integration with Instagram helped the company to scale high. Many celebrities and social media influencers who are not on Twitter but in Instagram signed up for Threads. You will not be able to use hashtags in Threads. You can only post content, links, and videos.
Threads are basically oriented for communities and friends. For instance, a group of college students from the same batch can start a Thread and begin conversation. They will be able to communicate with each other even after passing out of college. The launch of Threads will not be a big threat to Twitter because Elon Musk-owned company has its own users. Many people still depend upon Twitter to establish communication. The company has given special privileges to Verified users by adding enhanced content and video uploading limit and much more.
