Following the news that Twitter reported a 1% decline in revenue despite increasing the number of users on its platfrom by 8.8 million,

Rachel Foster Jones Thematic Technology Analyst at GlobalData a leading data and analytics company offers her view:

“Twitter is facing multiple headwinds from reduced ad revenue, changes to Apple’s privacy settings, some uncertainty around its future ownership, and competition with TikTok, which are all reflected in these disappointing results. However, the company is not the only social media business struggling to grow revenues during the current economic uncertainty, as rising inflation is causing brands to slash their marketing budgets.

“Twitter is a breeding ground for opinions and conversation. The current state of global affairs, from heatwaves to geopolitical conflicts, is attracting users to the platform to discuss their opinions. Yet, despite an increase in monetizable daily users, Twitter reported its first decline in revenue since the pandemic. Twitter should be able to use this growth in daily users to attract advertisers to the platform and drive ad revenues—even as the fate of the company is still in limbo.”