X (Twitter)Could post major revenue loss in 2024

X (Twitter) - Recent analyses suggest that, the platform, could experience significant financial losses in 2024.

This forecast is supported by various research firms and expert analyses, highlighting a concerning trend for the social media giant

Key Factors

Declining Advertising Revenue:

According to internal documents, X is expected to generate approximately $2.9 billion in total revenue for 2024, which is considerably lower than previous years.

This decline is primarily driven by a sharp drop in advertising revenue, which has seen a substantial decrease from over $1 billion per quarter in 2022 to around $600 million per quarter in 2023. 

Richard Haigh, Managing Director at Brand Finance, noted that the rebranding from Twitter to X has led to a dramatic loss in brand value and strength, contributing to advertisers' hesitance to invest

User Engagement Challenges:

Another critical issue is user engagement. Reports indicate that user activity on X has plateaued or even declined, which can deter advertisers looking for effective outreach.

If users do not engage with content as frequently, it could lead to reduced ad impressions and lower overall revenue.

Investor Losses:

An analysis by The Washington Post reveals that investors who supported Elon Musk's $44 billion acquisition of Twitter have collectively lost over $24 billion since the takeover.

This includes major stakeholders such as Jack Dorsey and Sequoia Capital, who have seen their investments significantly devalued. The overall valuation of X has plummeted by 72% since Musk took control in October 2022.

Conclusion:

If current trends continue, X could face a challenging financial landscape in 2024, marked by declining advertising revenues and user engagement issues.

Stakeholders will need to monitor these developments closely as the year unfolds.