No increase in sales since Elon took over Twitter

Twitter's advertising revenue has declined by nearly 50% since Elon Musk's acquisition of the company for $44 billion in October. Despite lower-than-expected sales in June, July shows a more promising outlook. Musk's cost-cutting measures included firing approximately half of Twitter's 7,500 employees. The competing app Threads has reportedly gathered around 150 million users.

Twitter faces challenges with a significant debt burden, as highlighted by Mr Musk in his tweet. In response to a tweet providing business advice, Musk tweeted on Saturday, stating, "We still have negative cash flow, primarily due to a 50% decline in advertising revenue and a significant debt burden." He emphasized the importance of achieving positive cash flow before considering any other endeavours, stating, "We need to attain positive cash flow before having the luxury to pursue other objectives."

In April, Musk mentioned that the majority of the departed advertisers had come back, raising hopes of achieving positive cash flow in the second quarter. In May, he appointed Linda Yaccarino as the new CEO, a highly experienced NBCUniversal executive known for her strong connections in the advertising industry. Recently, Twitter faced criticism from users due to new limits on daily tweet views and instances where users were locked out of the platform. Elon Musk explained that these restrictions were necessary to prevent unauthorized data scraping. In a competitive move, Meta, the owner of Facebook, introduced Threads, a text-focused app, which gained a significant number of users shortly after its launch. In response, Twitter threatened legal action against Meta.