X Battles User Loss Claims Amid Controversy and Competition
X, the platform previously recognized as Twitter, is currently in the midst of a controversy regarding claims of losing daily active users. Despite the company's rebuttals, limited data provided thus far does not fully negate the assertions made. Since Elon Musk’s acquisition in October 2022, X has encountered multiple obstacles, including an increase in bots, escalated hate speech levels, and inconsistent content moderation policies. These challenges have reportedly contributed to a significant decline in X's user base.
Recent figures from Sensor Tower, a reputable third-party mobile analytics firm, paint a stark picture of X's current status. The data reveals a 23% drop in daily active mobile app users in the U.S. since November 2022, marking X’s first full month under Musk's leadership. Furthermore, a year-over-year comparison shows an 18% decrease in mobile app users. As of the last month, X's daily active user count on its mobile app in the U.S. stood at 27 million.
In comparison to its competitors, X has experienced the most significant reduction in active users. According to Sensor Tower’s research, TikTok saw a 9.5% reduction, Instagram a nearly 4.5% drop, Snapchat declined by about 2%, and Facebook saw a decrease of less than one percent since November 2022. The study suggests that user dissatisfaction with rampant content issues, technical difficulties, and the burgeoning popularity of short-form video platforms may have influenced X’s user decline. The most precipitous drop occurred in the summer of 2023, coinciding with Musk initiating rate limiting and starting the rebranding process from Twitter to X, a change that included discontinuing the iconic bird logo.
Despite the concerning figures from Sensor Tower, X has publicly disputed the accuracy of these claims, stating that fewer people are using the platform today is incorrect. However, the company failed to provide concrete data to support its stance or debunk the report. Prior to Sensor Tower's publication, a separate post boasted about X achieving “250 million daily users” and “550 million monthly visitors.” Nonetheless, these numbers suggest a notable decline from the nearly 260 million daily active users reported shortly after Musk's takeover in November 2022.
In summary, while X struggles to maintain its user base amidst internal challenges and increasing competition, the lack of transparent data from the company leaves room for speculation regarding its future trajectory. As the platform continues to navigate its post-acquisition period, the digital community remains watchful of how X will adjust its strategies to reclaim and expand its user engagement.
Analyst comment
This news is negative for X (formerly known as Twitter). The controversy surrounding the platform’s loss of daily active users, along with challenges related to increase in bots, hate speech, and inconsistent content moderation policies, has led to a significant decline in X’s user base. The figures from Sensor Tower indicate a 23% drop in daily active mobile app users in the US, and an 18% decrease in mobile app users compared to the previous year. X’s competitors also experienced declines in user numbers, but X’s reduction was the most significant. As an analyst, it is expected that the market will react negatively to the news, with concerns about X’s future trajectory and its ability to regain and expand its user engagement.
