The deal that placed Elon Musk at the helm of X was initially met with high hopes that his vision and track record would elevate the platform's worth; however, new data has revealed the platform has reported disappointing user and advertising revenue figures.
Monthly active users dropped by 14.8% globally and 17.8% in the US in September. The daily average time spent per user fell by 2%, and sessions dipped by 4% in the third quarter of 2023. Additionally the amount of those who stopped using the app, rose by over 30% in September 2023.
Engagement metrics have plummeted across the board, with a 38% decrease in global app downloads between October 2022 and September 2023.
At the same time, major equity backer Fidelity held Twitter at a discount of 61.43% through August, with banks expected to take a 15% discount on debt they've been unable to offload.
Despite traffic to Musk's personal profile surging by 96% year-over-year in September, the businessman acknowledged a 60% decline in the company's US ad business. Western media suggest that due to the world's largest advertisers halting advertising on X, its ad system will generate $2.9 billion this year, down from around $4.14 billion in 2022.
The industry is closely watching the introduction of new products under Musk's leadership, with the alleged aim of creating a "super app." However, tensions between Musk and the media and regulators are compounding scrutiny surrounding the platform.