Musk says Twitter is losing cash because advertising is down and the company is carrying heavy debt

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Elon Musk says Twitter is still losing cash because advertising has dropped by half.

In a reply to a tweet offering business advice, Musk tweeted Saturday, “We’re still negative cash flow, due to 50% drop in advertising revenue plus heavy debt load.”“Need to reach positive cash flow before we have the luxury of anything else,” he concluded.

In April, Musk said most of the advertisers who left had returned and that the company might become cash-flow positive in the second quarter.

 

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