Social media giant Twitter posted a worse-than-expected loss Friday morning in its first earnings report since billionaire Elon Musk backed out on a deal to buy the company.
Social media giant Twitter posted a worse-than-expected loss Friday morning in its first earnings report since billionaire Elon Musk backed out on a deal to buy the company, fueled in part by the massive uncertainty around the firm’s fate as it embarks on a potentially lengthy legal battle with the world’s richest person.SOPA Images/LightRocket via Getty Imagesrevenue of $1.2 billion in the second quarter, falling short of average analyst estimates calling for $1.
The company also reported a worse-than-expected loss of $270 million, or 35 cents per share—compared to expectations for a loss of 7 cents per share and a profit of $66 million in the second quarter last year. In its earnings release, Twitter blamed the disappointing performance on advertising industry headwinds associated with broader economic concerns and uncertainty around Musk’s deal to buy Twitter and take it private.
The firm says it’s not hosting an earnings call, issuing a shareholder letter or sharing financial projections with the deal still in flux. Twitter also disclosed it spent about $33 million related to the acquisition in the second quarter and $19 million on costs associated with layoffs, including someTwitter stock futures were down 2% to about $38.50 within minutes of the announcement; shares have plunged more than 40% over the past year, while the S&P 500 has fallen about 16%.
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