Ever since Elon Musk purchased Twitter for a whopping $44 billion it has changed dramatically and is now a strange wasteland filled with bots and US politics.

When he bought the company, Musk said that the decision was not motivated by profit but he instead said that he wanted “to try to help humanity, whom I love.” That’s a relief for him because he certainly hasn’t made any money with the company and isn’t remotely close to turning a profit on the purchase.

In fact, investments and financial services giant Fidelity estimated in its monthly disclosure that the company is now worth about one-third of what Musk paid for it. The disclosure didn’t go into any of the details about how it reached that number but it’s a bad sign for Twitter nonetheless.

What is Causing Twitter to Go Downhill So Much So Fast?

If you didn’t know about the acquisition and opened up Twitter and scrolled for a few minutes, you might not notice many differences. Sure, there are slightly different verification check icons, a new view counter on each Tweet, and inordinately more Elon Musk tweets on your timeline, but the app doesn’t look that different.

If the app is mostly the same, you might be wondering why it’s likely worth much less than it was before Musk purchased it. The main consequences holding the platform down post-acquisition are its hemorrhaging users and catastrophic hits to ad revenue.

Pew Research Center released a poll earlier this May, revealing that a majority of US Twitter users took a break from Twitter in the past year. Even worse, a quarter said that they are likely not going to use it a year from now too. Pew noted that it held the survey about 5 months after Musk acquired the platform.

Women and Black Americans were more likely than any other groups polled to take a break. On the surface, some might suspect that this has something to do with political affiliation as both groups often skew to the left in the US and Musk has openly supported right-wing politicians.

This doesn’t seem to be the case according to the Pew poll as the percentage of Republicans taking a break was almost as high as Democrats.

According to Kepios, Twitter’s ad reach crashed by 32.9% in quarter-on-quarter change. Ad reach is simply the number of people Twitter can reach with its ads. Because ads are Twitter’s main source of revenue, no matter how hard Musk pushes for $8 blue checks, this is absolutely devastating to the platform.

Many users are leaving because they believe that Musk’s changes to the censorship policies were either biased or downright dangerous. Some simply wanted to protest Musk after he fired of nearly half of Twitter’s staff. Others may have just hated to see his Tweets over and over again on their timeline.

What’s Next For Twitter?

Twitter is no doubt struggling but Elon Musk has a plan that he says he will eventually grow the company into a $250 billion dollar business. He is going to turn it into X, a super app or an ‘Everything App.’ as Musk calls it.

A super app is a large multifunctional app that is essentially a ton of different apps with varying use cases all wrapped up into one. China’s WeChat is the first and most successful example of a super app. The business model is incredibly profitable if the app is popular.

For example, WeChat earns about $7 in revenue for every user, a ludicrously high figure that most apps couldn’t even dream of attaining, especially at such a large scale.

Musk will not be leading the company there as CEO, as he is stepping down in a few weeks, but he will still have a major role in the company. This decision wasn’t altogether surprising as he has gotten a fair amount of criticism about holding the CEO role at Tesla and Twitter (as well as SpaceX).

If Musk’s X plans succeed, X could be remarkably successful. However, he has a long way to go to turn Twitter around at all, let alone transform it into an entire ecosystem of apps.

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