chat on Twitter’s impact on of Tesla TSLA Fundamentals may rebound after new rumors surface.
What happened: Twitter’s revenue was down 40% year-over-year, Platformer’s managing editor Zoe Schiffer tweeted late Tuesday, calling the disclosure a small scoop, without specifying the exact time period.
Before Musk’s acquisition of Twitter, the social media platform’s revenue increased 6.8% to $2.38 billion in the six months ended June 30, while Q2 revenue fell about 1% to 11 $80 million.
Twitter, which typically reports its earnings in late October, did not release its earnings report after Mr. Musk took it private.
His acquisition put pressure on Twitter’s top lines as most advertisers either paused or fled the platform to provide more clarity on their policies and direction. , and the pursuit of free speech has led to the resurgence of many banned accounts and even more marginalized advertisers. In most cases, their product link ideas did not appear alongside inflammatory content.
Additionally, Twitter was also battling industry headwinds of slowing advertising spending in a soft economy.
Advertising accounted for approximately 91.5% of Twitter’s total revenue in Q2 2022. In a Twitter Spaces session, Musk slammed advertisers, saying they expected a high return on investment for their ad spend.
See also How did Elon Musk make money
Loan Deadline Approaching: Schiffer also said the first “huge interest” payment on a loan that Musk used to finance his deal with Twitter is due at the end of this month.
Musk funded Twitter’s deal with $31 billion in stock and $13 billion in leveraged buyout debt. About $3 billion of the $13 billion was in unsecured loans with an interest rate of 11.75%, according to Bloomberg. The report also suggested Twitter financiers, led by Morgan Stanley, were in talks to replace the high-interest portion of the debt with margin loans.
Important reasons: Tesla’s stock plummeted 65% in 2022, but some of the negative sentiment stems from Musk’s interest in Twitter. This social his media enterprise was seen as a distraction from his interest in his flagship electric vehicle business.
Rumors of Twitter’s predicament began to circulate when Tesla’s stock began to turn a corner.
On Tuesday, Tesla closed 7.43% higher at $131.49, according to Benzinga Pro data.
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