Elon Musk claims Twitter could soon be cash-flow positive


After a tumultuous four months under Elon Musk’s ownership, Twitter Inc. is close to being cash-flow positive, the billionaire claimed Tuesday.

Speaking at a Morgan Stanley conference in San Francisco, Musk said Twitter could break even on a cash-flow basis in the second quarter, and there’s a chance it could even be cash-flow positive.

“It’s been a very difficult four months, but I’m optimistic about the future,” Musk said, adding “I definitely don’t want to count chickens before they hatch.”

Also read: Elon Musk apologizes after taunting laid-off Twitter employee with disability

Musk’s $44 billion acquisition of Twitter was finalized last October, and he proceeded to slash costs at every level, including massive layoffs. Among his cost-saving moves was apparently not paying rent on some Twitter offices and not paying bills; as of last month, nine lawsuits claim Twitter owes at least $14 million in missed payments.

Twitter still faces serious challenges. Last week the company reported its ad revenue plunged 40% in December, according to the Wall Street Journal, and the service has been plagued by high-profile technical glitches and outages in recent months.

Musk has said Twitter was on track to be about $3 billion in the red after he took over. Twitter also faces about $1.5 billion in annual interest payments on the $13 billion in debt borrowed when Musk took the company private last year.

Musk said Tuesday it was “startling” how little money Twitter makes, though “I think the potential here for Twitter revenue is gigantic.”




Related articles

ChatGPT app downloads are slowing down, BofA finds

Sam Altman, CEO of OpenAIWin Mcnamee | Getty...

Missing Texas Teen Found Alive!

1A miracle occurred two days ago. A missing...

GM second-quarter sales increase 18.8% as supply chain stabilizes

2024 Chevrolet Silverado HD ZR2GMDETROIT – General Motors'...

How A.I. took center stage in the Hollywood writers’ strike

After failing to reach a contract resolution with...


Please enter your comment!
Please enter your name here