Twitter Blames Musk, Weak Ad Market As Revenue Tumbles

(Reuters) -Twitter Inc on Friday blamed uncertainties related to its $44 billion acquisition by Elon Musk and a weakening digital ad market for a surprise fall in quarterly revenue.

Twitter, which has sued Musk for dropping his offer to buy the company, said advertising revenue rose just 2% to $1.08 billion.

It reported second-quarter revenue of $1.18 billion, compared with $1.19 billion a year earlier. Analysts were expecting $1.32 billion, according to Refinitiv IBES data.

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Twitter shares were down 3% in trading before the bell.

The company’s results come after Snapchat parent Snap Inc posted weak results and declined to make a forecast, citing “incredibly challenging” conditions as advertisers cut back on spending.

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Twitter and its peers, including Snap and Alphabet, saw an uptick in revenue last year as brands spent heavily on advertising online, eyeing a recovery from the pandemic.

But inflation pressures and fears of a recession this year have forced brands to rethink their marketing budgets.

At the same time, Gen Z-favorite TikTok and tech giant Apple Inc, which gives users the choice to opt of data tracking, are grabbing market share in the digital ad space.

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