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The Rise and Fall of X: A Crossroads in Financial Viability Amidst Surging User Growth

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A Beacon of Growth

Elon Musk’s acquisition of the social media giant X for a hefty $44 billion in October 2022 marked a seismic shift in the industry. With 250 million daily users and an average usage of 30 minutes per person, X touts itself as “indispensable” to the daily lives of its users.

X has seen a remarkable upsurge in user engagement, boasting an average of over eight billion daily active user minutes in 2024, a 10% increase from the previous year. The platform reports a positive trend, with user time spent on mobile devices up by 17% compared to the last six months.

Questioning Financial Sustainability

While these numbers paint a rosy picture of X’s popularity, concerns loom over its financial stability. Skepticism among users is rife, with some questioning the authenticity of the reported growth figures. Doubts linger as users debate the notion of a platform being truly “indispensable,” citing examples like TikTok to challenge X’s perceived dominance.

One user voiced hopes for X’s financial success, emphasizing the importance of robust advertising revenue for the platform’s longevity.

The Crucial Financial Downturn

Why It’s Important: In a not-so-distant past, X faced a notable decline in advertising revenue during the tumultuous year of 2023. Reports indicated a sharp drop, with the platform struggling to surpass the $600 million mark per quarter, a stark contrast to the $1 billion quarterly revenue recorded in 2022.

Musk’s controversial online presence, coupled with decisions to reverse bans on policy-violating users, drew ire from significant stakeholders. This discontent manifested in actions by corporate giants such as Apple Inc. and the Walt Disney Co., who paused their advertising efforts on the platform, further complicating X’s financial outlook.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next: Elon Musk’s Latest X Spaces Was A Déjà Vu Of Ron DeSantis’ Glitchy Presidential Bid Announcement: ‘Just Discovered Another Bug’

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