Twitter Inc reported a weak corporate results report for the 2nd quarter (2Q) following the controversial acquisition by billionaire Elon Musk.
Detailing the report, Twitter recorded results below analysts' projections where total 2Q revenue declined to $1.18 billion compared to $1.19 billion in the same period last year while expectations were set at $1.32 billion.
Twitter's advertising revenue was seen to increase 2% at $1.08 billion but missed analysts' expectations at $1.22 billion.
In addition, Twitter recorded a net loss of $270 million or 35 cents per share compared to a profit of $65.6 million or 8 cents per share last year.
Commented Jasmine Enberg, an Insider Intelligence analyst, Twitter is now in a tense situation to reassure advertisers that its ad business is still strong despite the acquisition controversy.
Meanwhile, as of this writing Twitter shares are trading up 0.81% at $39.84 with a market capitalization of $30.44 billion.
Explained Dan Ives of Wedbush Securities that Twitter shares depend on the potential outcome of the trial.
On the opposite side, monetizable daily active users increased 16% at 237.8 million but still behind analysts' expectations of 238.7 million.
Revealing the controversial issue of Twitter, Musk previously acted to bid for the company with a value of $44 billion but canceled his intention due to bot spam problems.
That streak, Twitter's expenses in suing Musk totaled $33 million this quarter while related costs reached $19 million.
