When it doesn’t make sense, it doesn’t make sense, and it cannot last: the Twitter edition

Gilead

Twitter


Fig. 1. “Elon Musk shared a video of his entrance on his Twitter account.” Photograph attributed to Elon Musk, October 26, 2022, via the New York Post,[1] fair use.

Some 625 of the top 1,000 Twitter advertisers, including major brands such as Coca-Cola, Unilever, Jeep, Wells Fargo and Merck, had pulled their ad dollars as of January, according to estimates from Pathmatics, based on data running through January 25. . . .

As a result of the pullback, monthly revenue from Twitter’s top 1,000 advertisers plummeted by more than 60% from October through January 25, from around $127 million to just over $48 million, according to the data.[2]

Between this and the Twitter Blue fiasco, in which indeed, hardly anyone has signed up for the debased blue checkmark,[3] we are well into where I say, as I’ve said of a few things, “If it doesn’t make sense, it doesn’t make sense, and it cannot last.”

I don’t know what happens next. But most assuredly, something will.

Clare Duffy, “More than half of Twitter’s top 1,000 advertisers stopped spending on platform, data show,” Cable News Network, February 10, 2023, https://www.cnn.com/2023/02/10/tech/twitter-top-advertiser-decline/index.html


So-called ‘ridesharing’

Bezzle


Fig. 1. “Clarkdale Classic Gas Station, Clarkdale, Arizona,” Photograph by Alan Levine, October 28, 2016, via Wikimedia Commons, CC0.

Much as I despise both Uber and Lyft, I’m having a hard time seeing how Lyft’s demise would benefit anyone. It would just give Uber a free hand to treat drivers even worse, pay them even less, and to charge passengers even more.

But failing to make a profit means that both companies depend on investors’ largesse. And it sure looks like they’re turning sour on Lyft.[4]

Preetika Rana, “Lyft Shares Slide After Disappointing Revenue and Ridership Numbers,” Wall Street Journal, November 7, 2022, https://www.wsj.com/articles/lyft-q3-earnings-report-2022-11667852844

Ashley Capoot, “Uber beats estimates and the stock is up,” CNBC, February 8, 2023, https://www.cnbc.com/2023/02/08/uber-earnings-q4-2022.html

Levi Sumagaysay, “Lyft stock sinks 30% after sales outlook falls short of $1 billion,” MarketWatch, February 9, 2023, https://www.marketwatch.com/story/lyft-stock-sinks-more-than-20-after-sales-outlook-fails-to-reach-1-billion-11675977504

Caitlin McCabe, “Lyft Stock Has Worst Day Ever After Unexpected Loss; Uber Shares Fall,” Wall Street Journal, February 10, 2023, https://www.wsj.com/livecoverage/stock-market-news-today-02-10-2023/card/lyft-s-stock-heads-for-worst-day-ever-after-unexpected-loss-OSs9KvPhPM4k5RFXvDOx


  1. [1]Thomas Barrabi, “Elon Musk barges into Twitter HQ as deal nears: ‘Let that sink in,’” New York Post, October 26, 2022, https://nypost.com/2022/10/26/elon-musk-barges-into-twitter-headquarters-as-deal-nears/
  2. [2]Clare Duffy, “More than half of Twitter’s top 1,000 advertisers stopped spending on platform, data show,” Cable News Network, February 10, 2023, https://www.cnn.com/2023/02/10/tech/twitter-top-advertiser-decline/index.html
  3. [3]Mark Frauenfelder, “Only 180,000 people in the U.S. are paying for Twitter Blue. That covers about 1% of its annual debt,” Boing Boing, February 6, 2023, https://boingboing.net/2023/02/06/only-0-2-of-twitters-active-users-have-paid-for-twitter-blue-subscriptions.html
  4. [4]Caitlin McCabe, “Lyft Stock Has Worst Day Ever After Unexpected Loss; Uber Shares Fall,” Wall Street Journal, February 10, 2023, https://www.wsj.com/livecoverage/stock-market-news-today-02-10-2023/card/lyft-s-stock-heads-for-worst-day-ever-after-unexpected-loss-OSs9KvPhPM4k5RFXvDOx; Preetika Rana, “Lyft Shares Slide After Disappointing Revenue and Ridership Numbers,” Wall Street Journal, November 7, 2022, https://www.wsj.com/articles/lyft-q3-earnings-report-2022-11667852844; Levi Sumagaysay, “Lyft stock sinks 30% after sales outlook falls short of $1 billion,” MarketWatch, February 9, 2023, https://www.marketwatch.com/story/lyft-stock-sinks-more-than-20-after-sales-outlook-fails-to-reach-1-billion-11675977504

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