The exact number of X’s current users is undisclosed, making it challenging to gauge precisely how many people use the platform. However, data from various analytics firms suggests a decline in user engagement over the past year. David Carr from SimilarWeb noted that “basically everything is down on a year-over-year basis.” High-profile departures, including Elton John and Gigi Hadid, have also impacted the platform’s appeal. The introduction of paid blue tick verification has further eroded trust for some users.
2. Revenue Generation:
X’s primary challenge, as with Twitter before it, lies in monetization. Elon Musk has embarked on a cost-cutting strategy, which has led to layoffs and a significant impact on employees. While Musk introduced subscription-based revenue streams, including paid blue ticks and other premium features, ad revenue still forms a substantial portion of X’s income. Unfortunately, third-party data indicates a steady decline in monthly US ad revenue on the platform since Musk’s acquisition, exacerbating the company’s financial woes.
3. Leadership Transition:
The appointment of Linda Yaccarino as CEO was seen as a positive step for X. However, some experts believe she may not have had the freedom to innovate fully. The pressure to deliver quick revenue solutions, such as the subscription model, may limit the company’s long-term potential.
4. Ambitious Vision:
Elon Musk envisions X as more than just a social media platform; he aims for it to become an “everything app.” While this vision is ambitious, it raises questions about the feasibility and execution of such a transformation. Musk has yet to fully elaborate on what this entails, leaving observers curious about X’s future direction.
As X navigates these challenges and seeks to redefine its role in the digital landscape, the company faces uncertainty and scrutiny. The path forward for Elon Musk’s X remains an evolving narrative in the ever-changing world of social media and technology.