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Twitter attributes its declining revenue on Elon Musk and a sluggish ad market.

There will be an intriguing legal struggle in the ongoing Twitter-Elon Musk saga. In the most recent development, Twitter blamed weak performance on ‘headwinds’ on Friday (July 22), particularly the uncertainty surrounding the high-dollar Twitter buyout offer.

Twitter sued Musk for breaking the $44 billion purchase agreement he had made when he agreed to buy the tech company, which sparked the legal spat. A Delaware court has been sought by Twitter to compel Musk to consummate the acquisition at the agreed-upon $54.20 per Twitter share.

The company reported that Twitter missed expectations with revenue of $1.18 billion, due to ‘advertising industry headwinds… as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.’

‘Twitter is now in the unenviable position of convincing advertisers that its ad business is solid regardless of how its court battle with Musk ends, and its Q2 earnings show that the platform has its work cut it out for it to do that.’¬†¬†said Jasmine Enberg, the principal analyst at research firm Insider Intelligence.

Data from Refinitiv IBES show that advertising income increased by merely 2% to $1.08 billion. Wall Street’s forecast of $1.22 billion was not met.

The opening price of Twitter’s shares on Friday was $38.90. The number of ‘monetizable’ daily active users climbed by 8.8 million, fewer than analysts had predicted, according to Twitter, reaching 237.8 million. Users who can see advertisements are monetizable daily active users.

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