What's the deal with Twitter/X?
Since Elon Musk’s acquisition of Twitter in late 2022, the platform—now rebranded as X—has been grappling with significant challenges, leading many to question its future viability. Musk’s decision to rename the company as X reflects his broader vision of transforming the platform into an “everything app,” modeled after China’s WeChat, which integrates social media, payments, and e-commerce. However, the name change has been met with mixed reactions. Many long-time users lament the loss of the iconic Twitter brand and its well-known bird logo, while others remain cautiously optimistic, awaiting evidence of the app’s promised evolution.
Financially, the platform is struggling. Musk himself admitted that X's advertising revenue has dropped by nearly 50%. This decline in ad revenue coincides with sweeping layoffs that have reduced the company’s workforce by about 80%, and the introduction of controversial features like paid verification, which have yet to deliver meaningful profits. "We're in a dire situation," Musk said in a July 2023 interview, acknowledging the company's ongoing financial strain.
User sentiment regarding the rebrand has been divided. Some find the concept of X exciting, seeing it as a potential innovation in the tech landscape. Yet, many feel disconnected from the platform's new identity, with some questioning the practicality of such a drastic change. "The Twitter name had built years of brand loyalty and recognition," says media analyst Claire Atkinson. "The switch to X risks alienating long-time users who were emotionally attached to the original identity."
In terms of Musk's broader strategy, his vision for X is clear: he wants it to be more than just a social media platform. In an interview, he noted, "I think there’s tremendous potential for X to become something much bigger." However, Musk’s ambitious plan to integrate AI and decentralized systems may take years to fully implement. In the meantime, X continues to face significant issues, including frequent technical glitches, a surge in misinformation, and advertiser hesitancy. Major brands like Coca-Cola and General Motors have scaled back their advertising, citing concerns over content moderation under Musk’s leadership.
Whether Musk’s vision for X materializes remains to be seen. While his bold moves could potentially revolutionize the platform, the current challenges—financial instability, user dissatisfaction, and the loss of key advertisers—paint an uncertain picture for the company’s future. As X navigates this turbulent transition, its fate remains one of the most closely watched stories in the tech world.
AP News, Reuters, The Guardian, Wired, Bloomberg, The Wall Street Journal, CNBC, Financial Times, TechCrunch, Vox
