Elon Musk's acquisition of Twitter, now renamed as X, has not resulted in the expected growth and improvements. Despite Musk's ambition to turn the platform into a billion-user platform, X is currently the 39th most downloaded iOS app in the U.S. and 63rd on Android.
Musk's arrival initially boosted the platform to a record high of 250 million daily active users. However, this number has not increased since then, contradicting Musk's claims of "record high" results.
X's struggle to attract new users and expand its audience has led to the promotion of ad discounts to attract more ad partners and increase revenue. X is offering $500 in ad credit for $250 in ad spend, indicating a desperate need to boost its ad intake.
Despite Musk's claims that most advertisers have returned to the app, reports suggest that X's ad intake is still down around 50% on pre-Elon levels. This, combined with the company being saddled with billions in debt from Musk's acquisition, raises concerns about X's financial stability.
Musk's attempts to reduce reliance on ad dollars through subscription services have also failed to resonate with users. According to AppFigures, X brought in $8 million of net revenue from the App Store and Google Play in April 2024, indicating that only a small percentage of X's user base is paying for the service.
The article suggests that X could potentially go out of business, with Musk unable to save it. The author speculates that if things do not improve, X could shut down entirely in 2025. The fact that X is offering massive ad discounts is not a positive signal at this stage.
