In a shocking turn of events, Twitter’s advertising revenue is experiencing a significant decline, further intensifying the challenges faced by the social media giant. Adding to the mounting troubles is the emergence of a new rival, Threads, a Twitter lookalike app, which threatens to erode Twitter’s user base and exacerbate the company’s woes.

Recent reports from various media outlets highlight the severe blow to Twitter’s advertising business, which serves as its primary source of revenue. The New York Times, for instance, revealed that US ad revenue for the period between April 1 and the first week of May plummeted nearly 60% compared to the previous year. Prominent advertisers such as General Motors, Volkswagen, Pfizer, and Mondelez have decided to withdraw their investments, exacerbating the already dire situation.

The repercussions of this advertising crisis have taken a toll on Twitter’s overall valuation, causing a downward spiral. Fidelity, a renowned investment firm, currently estimates the company’s worth at a mere $15 billion. This figure pales in comparison to the eye-popping $44 billion price tag that Elon Musk paid for the acquisition of Threads, amplifying the sense of urgency for Twitter to rectify its issues and reclaim its position in the market.

Meanwhile, Threads, the Twitter clone spearheaded by Musk, is poised to seize the moment. With Twitter’s public trust rapidly eroding, Threads aims to capitalize on the growing discontent by offering a familiar platform that could entice disenchanted Twitter users to make the switch. The app’s striking similarities to Twitter, coupled with the allure of a fresh start, have the potential to lure away a significant portion of Twitter’s user base, adding to the mounting pressure faced by the embattled company.