Illustration: Aïda Amer/Axios
Twitter is the only social media stock that hasn’t completely cratered this year, despite the fact that all signs point to 2022 being particularly brutal for the tech giant.
Why it matters: The company's dramatic deal with Elon Musk has overshadowed its business challenges. But when you peel back the curtain, it's clear that Musk could not have picked a worse time to overpay for Twitter.
Details: Inside Twitter, employees told Axios that despite best efforts to operate business as usual, the takeover saga has made it challenging to discuss long-term deals with clients and vendors.
Between the lines: Former employees say the company's business struggles have been exacerbated by years of corporate turnover and indecision.
Driving the news: Snapchat's earnings call last week sent shockwaves through the social media industry, after the tech giant said it saw a pullback last quarter on brand ad spending, or ads that tout a company's reputation rather than trying to sell a product directly.
Between the lines: The tech giant has pushed to diversify its revenue in recent months with subscriptions. But those products, like Twitter Blue and Super Follows, haven't gained significant traction.
Yes, but: Monthly downloads to Twitter have remained consistent over the past year, per Apptopia, and the company says it has continue to grow its user base this year, even after record pandemic growth.
What to watch: Reports suggest Elon Musk could be looking to overhaul Twitter's workforce to bend the company to meet his vision. While some analysts are bullish on Musk's ability to recruit great talent, there's no question that transforming Twitter's business will be a huge uphill battle.
What's next: The official deal is expected to close October 28th, but uncertainty remains.