Twitter’s deal failure with Elon Musk has outlived its business challenges, which may be exacerbated as growth in the advertising market slows down and the company deals with the operational fallout of Musk Mess.
Why it matters: Musk’s initial $ 44 billion bid to buy Twitter was already an exceptional premium on Twitter shares, but it’s an even greater number when one considers the current market free fall.
Details: Twitter revenue growth has been slower in the last five years than its other ad-supported peers, most notably Snapchat.
Between the lines: The company has taken steps to promote its advertising product in recent years through investment in video ads, direct-response advertising and more recently on investment and contextual ad targeting driven by its themed feature.
Be smart: Twitter has tried to diversify its business away from advertising revenue by investing in new consumer subscription products such as Twitter Blue and Super Follows.
Yes, but: User growth at the company remains relatively strong, despite the fact that the commitment is believable compared to some competitors.
The big picture: Twitter shares have been in a downward spiral since Musk officially tried to get back out of the deal, and fell to a two-year low on Monday.
Go deeper: The biggest loser of Elon Musk’s Twitter chaos
