🐦📉 Advertisers are Leaving Twitter in Droves!
Hi all,
Happy Sunday! 👋🏻 Spent the week in the Washington D.C. / Maryland area for the first time ever. It was cool to see the Washington Monument (the ✏️, as they call it). I posted some stories on my Instagram - make sure to follow me there.
Often times I am not the best “influencer”, I’m not posting stories every day, I’m not tweeting every day, and I’m not even creating short-form content daily. I’m laser-focused on creating good YouTube videos this year, and I hope you can forgive me that I’m not omnipresent everywhere.
Below is one of my favorite tweets of the week and shows you the power of compounding and dividend reinvestment. I’ve always loved dividends and am considering making more content on that topic in the coming weeks.
Market Report
Twitter Revenue Falls Off
Twitter Inc. experienced a significant drop in revenue and adjusted earnings in December, with a decline of around 40% year-over-year, due to many advertisers leaving the social media platform, according to an investor update.
Although new owner Elon Musk has previously mentioned the possibility of bankruptcy for Twitter, he stated last month that the company is "trending to breakeven," and the platform made its first interest payment on the $12.5 billion in debt used to take the company private in 2021.
Amazon Shutters Construction of New Headquarters
Amazon has put on hold its planned second headquarters in Arlington, Virginia, which would have had three 22-story office buildings and generate more than 25,000 jobs.
The tech giant will temporarily halt the $2.5 billion project, which it planned to start during the first quarter of 2023, while the first phase, comprising two office towers, is almost complete, with employees expected to move in from June.
The tech industry's growth, which was an economic driver in the US, has started to have a dampening effect on some sectors of the economy. Amazon, for instance, had been expanding rapidly during the pandemic but has recently announced extensive cost-cutting measures, including laying off about 18,000 employees, which was the highest number of any tech company during the recent wave of layoffs.
Amazon had similarly paused plans for expansions in Nashville and Bellevue, Washington, and is reassessing what type of workspace is needed after the pandemic, indicating how tech companies are re-evaluating the changing landscape.
Top Apple Supplier Plans Major India Expansion Away From China
Foxconn Technology Group, the main manufacturer for Apple, is planning a major expansion in India to diversify beyond China. Foxconn is set to expand production of iPhones at its existing plant in India with a goal of boosting iPhone production to around 20 million units annually by 2024 and roughly tripling the number of workers to as many as 100,000.
Foxconn also plans to build a new production facility and is considering building a new production site in India, as well as a silicon fabrication plant and packaging facility for its semiconductor business.
Apple has been pushing suppliers to diversify beyond China after many of them faced production disruptions during Covid-19 lockdowns. With geopolitical tensions growing between the US and China, as well as between Beijing and Taiwan, where Foxconn is based, the move to India is seen as a strategic diversification effort.