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Investing.com-- Billionaire Elon Musk said on Thursday that revenue from the social media site X will improve rapidly this year as advertisers return to the website.
“Revenue should improve rapidly this year, as the advertising boycott winds down,” Musk said in an X post, responding to a post discussing X’s revenue.
The post in question was referring to a Wall Street Journal report on increased investor interest in X’s debt, as revenues appeared to be improving after reaching an inflection point before the 2024 elections.
But a WSJ report from January, citing an internal memo from Musk, showed the billionaire concerned over stagnating user growth, unimpressive revenue, and that the company was “barely breaking even.”
X- which was taken private by Musk as Twitter in a $44 billion deal in 2022- does not publicly disclose its financials.
Since taking over the firm, Musk had fired a bulk of Twitter’s staff and radically overhauled its algorithms and moderation mechanisms, to the contention of several advertisers on the website.
Musk had also introduced a paid subscription, while reinstating controversial accounts, such as President Donald Trump.
Prior to Musk’s takeover, Twitter’s biggest revenue source was advertising. It is unclear if this remained the case, given that several major advertisers, including Apple Inc (NASDAQ:AAPL) and Disney (NYSE:DIS), had pulled their ads from the website on concerns over hate speech.
But this trend appeared to be changing in recent weeks. Last week, the WSJ reported that Amazon (NASDAQ:AMZN) was planning to raise its advertising spending on X.