Twitter Revenue Falls Short of Expectations, Blames Elon Musk and Online Advertising Market

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Ngày cập nhật gần nhất: 1/5/2026

Last Friday, Twitter announced its Q2 revenue. While analysts had forecasted $1.22 billion from online advertising, Twitter only generated $1.08 billion in the last quarter, despite a 2% increase from the previous quarter. Including revenue from Twitter Blue, the platform made $1.18 billion, lower than $1.19 billion in the same period of 2021.

Explaining this situation, Twitter management blames issues in the deal with Elon Musk, which has led to legal battles between the social media platform and the billionaire in Delaware courts. The drama surrounding this deal has made advertisers wary of the effectiveness of ad placements on Twitter, fearing they may not convert into specific product revenues. Consequently, advertisers are more cautious about running ads on Twitter.

Jasmine Enberg, a strategic analyst at Insider Intelligence, believes: 'Twitter is currently in an undesirable position, having to convince advertisers that their social media advertising sector is stable, regardless of the legal battle with Musk's outcome.'

Dan Ives of Wedbush Securities argues that Twitter's stock price is entirely dependent on the outcome of the lawsuit with Elon Musk, while the platform's business situation fails to reassure investors. Last Friday, when the stock market opened for trading, a Twitter share was only worth $38.90.

Somewhat fortunately for Twitter, the number of users capable of generating revenue for them, namely those who view ads daily, increased by 16%, reaching 237.8 million users. However, Twitter's operating expenses also rose by 31%. Just in the last quarter, costs related to the sale of Twitter to Elon Musk reached $33 million, while personnel reduction costs amounted to $19 million.

Not only Twitter, but also economic pressures, risks associated with inflation, and concerns about economic downturns have led many entities to cut advertising and marketing costs, including expenses for social media advertising.

According to Reuters

Frequently Asked Questions

What were Twitter's Q2 revenue figures compared to analysts' expectations?

Twitter's Q2 revenue was $1.08 billion, falling short of analysts' expectations of $1.22 billion. Despite this, there was a 2% increase from the previous quarter, but overall revenue including Twitter Blue was $1.18 billion, lower than $1.19 billion in the same period last year.

How has the legal battle with Elon Musk affected Twitter's advertising?

Yes, the legal battle with Elon Musk has negatively impacted Twitter's advertising. Advertisers are cautious due to uncertainties surrounding the effectiveness of their ad placements, fearing that these might not convert into sales, which has made them hesitant to invest in ads on the platform.

What is the current state of Twitter's user base in terms of ad revenue generation?

As of the latest quarter, Twitter's user base capable of generating ad revenue increased by 16%, reaching 237.8 million users. This growth is a positive sign for Twitter, despite the legal and economic challenges affecting the advertising landscape.

What are the implications of Twitter's rising operating expenses on its financial health?

Twitter's operating expenses rose by 31%, raising concerns about its financial health. In the last quarter, costs related to the sale to Elon Musk reached $33 million, while personnel reduction costs were $19 million, indicating significant financial strain amidst the ongoing legal issues.

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