Key economic factors determining twitters future costs

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Reference no: EM133931348

Assignment:

Twitter's revenues have risen sharply over the last decade (Twitter: worldwide revenue 2021 | Statista). Even so, Twitter had reported a net operating loss in 2021 that was partially related to a lawsuit about Twitter's fibs to investors about the growth of the company's subscriber base. To prevent the stock price from falling in the aftermath of this scandal, the company conducted a share buyback that caused its stock price to rise instead of falling (Twitter posts loss for 2021, but stock up on share buyback (yahoo.com)

On October 28th, Elon Musk officially completed his long running corporate takeover of Twitter. Here are a couple of brief summaries of the timeline through the takeover and up to mid-November:

A timeline of Elon Musk's takeover of Twitter (nbcnews.com)

Elon Musk's Twitter Buyout: The Complete Timeline of the News So Far - IGN

Twitter's revenues have dropped since the takeover was completed (Less than a month after Musk takeover, half of Twitter's top advertisers have halted activity: report | The Hill). At the same time, the company is trying to cut costs via layoffs (Twitter Cost Cutting Continues as Contractors Fired Without Notice (yahoo.com) and infrastructure cuts (Musk orders Twitter to cut infrastructure costs by $1 billion - sources | Reuters.

Even so, there are some indications that the subscriber base of the company may actually still be rising, all this turbulence and uncertainty notwithstanding (Elon Musk says Twitter sign-ups at all-time high, predicts one billion monthly active users one year from now | Fox Business).

In the context of these things, your assignment is to explain about what you believe will be the key economic factors determining Twitter's future costs, revenues, and profits. As part of your essay, you should try to assess what you believe will be the key factors determining the company's future successes and/or failures.

Reference no: EM133931348

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