Ups, Downs, Transformations: How has Twitter, now X, been in the year since Elon Musk took over

When Elon Musk acquired Twitter and took control of it about a year, people had some seriously polarising reactions. Fans of Elon said that Twitter, now X would be a completely different app within one year, whereas critics of the eccentric tech billionaire, said that the platform would go bankrupt and shut down.

However, one year after Musk took control of Twitter, promising to turn it into an “everything app,” the social media platform’s grand makeover has yet to fully materialize. Third-party data indicates several challenges on the horizon, from dwindling user metrics to content moderation woes, leaving Musk to defend his vision, citing its “fast growth.”

So how exactly has X been under Musk and is it any closer to becoming the super app that Elon Musk had hoped it to be? Or, is it just barely able to stay afloat and is on the verge of a major collapse? We take a look.

User Metrics: Ups and Downs
Musk touted the platform’s success, claiming record-breaking “user-seconds” in recent months. X reported 245 million daily active users in September, slightly down from Musk’s November 2022 figure of 259.4 million. However, third-party analysis by Sensor Tower reveals a 16 per cent drop in daily active users via mobile apps compared to Musk’s takeover month.

Twitter’s brand value goes for a toss
Back in April, there was some buzz about Elon Musk wanting to give Twitter a quirky makeover by renaming it as the super quirky “X Corp.” Documents claimed that Twitter had basically transformed into this new X Corp and didn’t exist as Twitter anymore. But the actual visual rebranding to “X” didn’t happen until the summer. Moreover, the URL for the platform still reads Twitter.

X’s Resilience
While competitors like Meta Platforms have sought to rival X, the platform remains a staple for many users. Among all the ‘Twitter-Killers’ that were launched, Meta’s Threads got the most attention when it was launched in July. However, it fizzled out just as quickly as it made headlines. Months after Threads was launched, Twitter still boasts a more substantial user base.

Staff Cuts and Technical Woes
One of Musk’s first actions upon taking over X as to drastically reduce the headcount, raising concerns about overworked engineers and a growing number of glitches. Despite these issues, some users appreciate Musk’s stewardship. Technical problems were not exclusive to the Musk era, as they existed before his takeover, however, they did shoot up right after he started cutting X’s headcount. For the last couple of months though, blackouts on X have been few and far between.

Challenges in Reassuring Advertisers
X CEO Linda Yaccarino is now striving to paint a rosier picture of the platform’s state, emphasizing that 90 per cent of the top 100 advertisers from the previous year have returned. Advertising has traditionally been Twitter’s primary revenue source, but the platform is exploring additional income streams, such as subscriptions.

Investor Worries and Musk’s Ambitions
Musk’s vision for Twitter extends beyond social media, envisioning it as an “everything app.” However, concerns about declining value persist, with several asset managers marking down their investments. Cathie Wood of ARK Investment Management remains bullish on Twitter’s long-term prospects.

Subscriptions vs Advertising
Despite efforts to introduce subscription-based features, Twitter remains heavily reliant on advertising revenue. Data shows a consistent decline in monthly U.S. ad revenue year-over-year since Musk’s acquisition.

Hopes for Twitter’s Future
The appointment of CEO Linda Yaccarino was seen as a positive step for Twitter, aiming to create a distinct separation between Musk and the platform. Musk’s ambitious plans include expanding Twitter into various sectors, from audio and video to banking and more.

Moderation Challenges
Twitter continues to grapple with content moderation, with reports of hosting hateful posts. The Centre for Countering Digital Hate revealed that nearly 86 per cent of reported hateful posts remained on the platform a week after being reported. The battle between Twitter and advocacy groups over moderation policies rages on.

As challenges persist for Twitter, Musk’s ambition to transform it into an “everything app” remains undeterred. His pinned post on the platform reads: “Twitter as humanity’s collective consciousness.”