Prior to Elon Musk’s takeover, Twitter was already confronted by alarming projections of a revenue decrease exceeding 50% year-over-year by October 2022. Despite leadership changes, the platform seemed unable to rectify its poor financial performance. There were early indications that advertisers were losing confidence in Twitter’s direction, even before the deal closed.

The fledgling tenure of CEO Elon Musk has been defined by chaos. However, the ramifications intensified drastically after Musk openly agreed with an anti-Semitic conspiracy theory tweeted by another user. This prompted over 100 companies to suspend advertising on Twitter over brand safety fears. Musk responded by threatening legal action against watchdog group Media Matters for America for reporting on ads appearing alongside hate speech. Additionally, you can also read about- Elon Musk Still Dominates Twitter Despite New CEO Linda Yaccarino’s Appointment

These events have brought into focus deeper flaws in Twitter’s advertising mechanisms. Analysts believe the platform faces irreversible reputational damage for enabling misinformation and extremism under Musk’s management. Advertisers expect more ethical governance from social networks. By promoting bigotry, Twitter loses credibility and risks permanently losing a chunk of ad revenue.

Experts monitoring the situation are revising their projections to predict losses exceeding 60–70% of Twitter’s $5 billion ad business compared to 2021. This raises serious questions about Twitter’s viability as a publicly traded company. Tough decisions may be required to prevent a complete collapse.

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