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Will Twitter Be better and more effective with Elon Musk?

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fatima khan
fatima khan
A brand new writer in the fields, Fatima has been taken under my electric spark's RGB- rich and ensures she doesn't engage in excessive snark on the website. It's unclear what command and Conquer are; however, she can talk for hours about the odd rhythm games, hardware, product reviews, and MMOs that were popular in the 2000s. Fatima has been creating various announcements, previews, and other content while here, but particularly enjoys writing regarding Products' latest news in the market she's currently addicted to. She is likely talking to an additional blogger with her current obsession right now.
In the wake of Elon Musk's closing the deal that will cost 444 billion to buy Twitter for $44 billion,
Elon Musk
image by archyw

Analysts are praising the deal’s value to shareholders. The Tesla mogul’s plans to purchase Tesla have raised concerns regarding the exit of advertisers who are uncertain about the future of their product and unclear revenue goals.

In the wake of Elon Musk’s closing the deal that will cost 444 billion to buy Twitter for $44 billion, Twitter, Wall Street experts have offered their opinions on what the sale will mean for Twitter’s media empire, what consequences it will have on the broader digital advertising sector, and whether the turbulent Tesla CEO is the perfect choice for the company.

“Twitter –“Run … toward to the Bank,” MoffettNathanson analyst Michael Nathanson, who has been awarded the “neutral” assessment of the stock, shared his report. The most important takeaway: “We did not believe that there was a second bidder in the market and thought that Musk’s bid was a bargain-priced opportunity for shareholders looking at the company’s monetization, operational, and valuation issues. The buyout cost of $54.20 is proof enough to prove that the idea behind Twitter is worth more over the operations over the long term, which comprises Twitter! “

Twitter founder Jack Dorsey also tweeted about Twitter as an idea and a possibility after the announcement on Monday, declaring: “The idea and service are what is most important for me, and I’ll do the necessary steps to safeguard both. “

In the meantime, Evercore ISI analyst Mark Mahaney outlined the most pressing questions investors have, including whether Twitter will transform into a “better” site under Musk’s direction. “Hard to find out,” the Wall Street expert told. “We are unwavering in our belief that the development of new products for both consumers and advertisers is one of the weak points at Twitter in the last few decades. In the past, Twitter management has acknowledged that. The obvious conclusion is that Twitter, under the direction of Musk, will not enhance its innovation in the development of its services. The decision of whether or not it will get better or not remains a mystery. “

Mahaney also talked about an eventual exodus of marketers. With Musk speaking of “almost the whole purpose of mentioning the advertisers from Twitter” and talking about the company’s subscription service, “there is a distinct possibility that marketers will move their marketing campaigns to other websites (Google, Facebook, Snap, TikTok, Reddit, etc. ),” the author argued.

“As for consumers, our extensive research on the past seven years hasn’t found much interest in Twitter’s moderated content policies among Musk’s biggest concerns,” Mahaney said. Musk,” Mahaney also said. “We’re not sure this moderated approach to content will bring about an increase in the number of users. Interest in subscriptions to the service isn’t always high in our surveys, with just 13 percent of the respondents to our recent survey saying that they are interested. Musk’s ideas to allow edits to tweets and remove the character limit on the text appear to us as very sensible and user-friendly. “

Do you think Twitter’s Twitter board “made the right decision for shareholders” when it came to the arrangement that it struck with Musk? “That is dependent on two factors,” Mahaney argued. “How do you feel about the knowledge that the Twitter leadership team and the board can reach the goals they’ve declared in 2023 ($7.5 billion in revenue and 315 million daily active, also referred to by the term DAUs). as well as also when you think that the demand for growing equity will begin to return.” The result was that “Musk’s deal with its huge price came at an economic downturn in the tech sector that saw Twitter shares were trading 50% less than their previous highs in the latter half of 21st century,” said the Evercore ISI expert said.

In the wake of Twitter’s most recent financial report released on Thursday, the analyst Nathanson also shared his opinions about the implications for business and lessons to be learned from the Musk agreement. “Interestingly, the board has endorsed the deal just three days before the date that Twitter announces its first-quarter earnings of 2022,” Nathanson wrote. “Last week, Snap’s quarterly earnings showed that brands’ advertising was less effective than performance ads, despite macroeconomic factors that impact macroeconomics, including rising supply chain and inflation and the ongoing conflict within Ukraine. It is our opinion Snap’s weaknesses in the area of advertising for brands (which we estimate is around one-quarter of Snap’s advertising revenue) can be a bad sign for Twitter because it is most likely to spend on brands among the top digital ad platforms (brand represented the most significant portion of Twitter’s advertising revenue in that year). “

How will this impact how branding ads and other forms of advertisement on social media and other channels on the internet? “We think advertisers will be less likely to invest in Twitter if Elon Musk removes content moderation to permit the freedom of expression,” Nathanson wrote. However, he also stated: “We continue to believe that performance advertising is the principal driver behind the digital (and the overall) U.S. ad spend shortly, and we don’t believe that an acquisition by Twitter via Elon Musk notably alters the direction of this. “

John Blackledge from The Cowen’s John Blackledge also discussed the effects that the market for ads could have played in this social media company’s selection to accept Musk’s proposal. “While it’s true that the offer represents significant, with a 38 percent rise over April’s beginning, it’s also in that middle point of twitter’s 52-week trading range, with an average loss of 26% to its most recent annual high,” he highlighted. “That is a fact, considering that macro-, as well as market environment, has been deteriorating over the last few months, and the potential of adverse effects shortly due to the conflict in Ukraine Ukraine conflicts on brand’s marketing campaign and branding The board may find it challenging to achieve the same or even higher value for the proposition in the near or mid-term. Additionally, when considering the various macro-related obstacles (rising rates of interest growing inflation, and supply chain challenges and supply chain challenges. ), It is possible that the board could have thought about a U.S. recession on the horizon shortly that could impact the advertising business for brands on Twitter and also the of the price of shares. “

Blackledge has stated that the company was required to focus on the advertising industry: “Twitter’s management has worked in the past to enhance the level of service that it offers users and advertisers alike. This includes the most recent enhancement to its tech stack used for advertising to increase the amount of direct-response (DR) advertisements that are focused on achieving the goal of increasing DR advertising to 50% of the total advertising revenue instead of 15 percent currently, which is lower than the social networks. “

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