X (Formerly Twitter) Business Model

X, formerly known as Twitter, is a global communications company rebranded under Elon Musk’s leadership, aiming to become an “everything app” that combines social media, AI, content, and transactions in one platform.

X’s business model is an AI-powered super app that generates revenue through subscriptions, advertising, data licensing, and creator monetization.

Based in San Francisco, California, Twitter is one of the most widely used social media platforms around the world. On X, users can post text with limited characters, images, and videos, known as tweets, on their timelines. These tweets can be liked, retweeted, and quoted by other people, depending on the user’s privacy settings.

With over 500 million users, Twitter is the 15th most-used social media platform in 2022. It is popularly used by businesses, media influencers, journalists, politicians, brands, entertainers, celebrities, and private users. Users can access the social media platform through the Android and iOS mobile apps or web browsers on their mobile or desktop devices. Twitter users can also send private messages (DMs) to their followers and other users, depending on their privacy settings.

Since its creation, Twitter has experienced tremendous growth that can be attributed to its modes of operation. Therefore, in this article, we will be analyzing Twitter’s processes, business model, history, strengths, weaknesses, and every factor that has contributed to its growth so far.

A brief history of Twitter

The origin of Twitter can be traced back to a podcasting company named Odeo, in South Park, San Francisco. Odeo was a website and directory used for the publishing and aggregation of podcasts. The company made a considerable amount of progress, however, it faced stiff competition from other tech giants, such as Apple, who provided the same services. Therefore, the founders and board at Odeo decided to pursue a different path.

To decide the best direction for the company to head, board members at Odeo had to break up into small teams to hold a daylong brainstorming session that later produced the idea of Twitter. During the brainstorming session, Jack Dorsey, an undergraduate at the New York University, at the time, pitched the idea of Twitter to his fellow team members. Jack described his idea as “a service that uses SMS to tell small groups what you are doing”.

Jack further described his idea as a dispatch service that connects everybody on their phones through texts. Everyone in Jack’s brainstorming team loved and bought the idea. Later on, every brainstorming group presented their ideas and Jack’s idea was among the few that were selected for prototyping. Demos of the selected ideas were made, and Jack and two other people were assigned to build version 0.1. The remaining members of the company went back to maintaining Odeo.com, in case Jack’s new idea failed.

Twitter was founded on 21st March 2006 by Jack Dorsey and cofounders Evan Williams, and Biz Stone, when the first version of Jack’s idea was created. At 12:50 pm PST UTC-08:00 of the same day, Jack made the first ever tweet, “just setting up my twttr”. This version of Twitter was entirely web-based. The original project name for Jack’s idea was “twttr“, coined by Noah Glass, an American technology entrepreneur who is a part of Twitter’s success story.

The project codename, “twttr“, was inspired by the fact that the American SMS short codes are five characters in length and Flickr, the popular American image and video hosting service. Another reason for the use of the codename twttr was that someone else had registered the twitter.com domain. However, about 6 months after the launch of Jack’s project idea, they were finally able to purchase the twitter.com domain and the service was rebranded and renamed Twitter.

Initially, Twitter had only about 50 users because its user base was limited to members of Odeo and their immediate families. This was to prevent the idea from leaking to competitors while development was ongoing. A while later, Twttr Beta was launched and the user base was slightly expanded. On July 15, 2006, the full version of Twitter was publicly released.

In October, Jack Dorsey, Evan Williams, Biz Stone, and some other members of Odeo formed a new company named Obvious Corporation. The new company later acquired Odeo and its assets (odeo.com and twitter.com). Twitter was later spun off into its own entity in April 2007.

After spinning off into its own company, Twitter experienced rapid growth as its user base expanded, and it recorded more tweets. Popular celebrities and politicians like Britney Spears, Oprah Winfrey, and Barack Obama started joining the social media platform. Amidst all of these, Jack Dorsey became the CEO of Twitter. By January 2009, Twitter had grown so much that it became the second-highest social networking site from being the twenty-second. In the same year, the company also won the “Breakout of the year” Webby Award.

In 2010, Twitter began to roll out new features and revamp the existing version of the service. Users could see images and watch videos from supported sites, such as Flickr and YouTube, without having to leave Twitter. By Twitter’s sixth birthday on 21st March 2012, it had already registered 140 million users and was recording 340 million tweets per day. In 2013, Twitter went public and started trading on the New York Stock Exchange under the ticker symbol $TWTR. In the same year, Twitter acquired some services such as Crashlytics, Trendrr, and MoPub to help it improve the services it renders.

In the following years, Twitter kept redesigning its software, and by 2019, it was said to be the 10th most downloaded mobile app of the decade (2010-2019). Due to the COVID-19 pandemic, Twitter experienced more growth in 2020. However, the platform was sometimes used to spread misinformation, and this led to Twitter marking tweets that are perceived to have misleading information. Also, tweets and accounts of prominent persons have been brought down occasionally.

On April 14, 2022, Elon Musk, a renowned business magnate and investor, made a bid of $43 billion to acquire Twitter. However, this was short-lived as Elon Musk withdrew his proposal on July 8 of the same year, citing Twitter’s breach of some parts of the agreement as the reason for the withdrawal. On October 27, 2022, Elon Musk completed the acquisition process of Twitter and became CEO following the dissolution of the company’s board.

Who Owns Twitter

X, formerly known as Twitter, is now owned by Elon Musk. He completed a $44 billion acquisition of the company on October 27, 2022. Prior to the acquisition, Twitter was a publicly traded company on the New York Stock Exchange (NYSE) under the ticker $TWTR. At that time, the company’s CEO was Parag Agrawal.

Agrawal and other key executives held shares before the acquisition. Parag Agrawal owned 128,000 shares valued at $7 million, Ned Segal (former CFO) held 394,000 shares worth $21 million, and Vijaya Gadde, the former head of legal policy, trust, and safety, owned 600,000 shares valued at $32 million. All three executives were dismissed by Musk shortly after he took control.

Before completing the acquisition, Musk initially bought a 9.1% stake in the company. At the time, institutional investors owned the majority of Twitter’s shares. Vanguard Group was the largest shareholder, holding 82.4 million shares (a 10.3% stake). Other major stakeholders included Morgan Stanley Investment Management (8.4%), BlackRock Fund Advisors (6.5%), and State Street Corporation (4.5%). Twitter co-founder Jack Dorsey held 18 million shares, representing a 2.4% individual stake.

Musk purchased Twitter at $54.20 per share, taking the company private. On November 8, 2022, Twitter’s ticker symbol, $TWTR, was officially delisted from the NYSE.

In March 2025, Musk merged Twitter — now operating as X — with his artificial intelligence company, xAI, in an all-stock transaction. This strategic move combined the social platform’s reach and data with xAI’s advanced AI capabilities, creating a unified company valued at $113 billion. Musk remains the controlling figure behind both entities.

Ownership Timeline of Twitter / X

Since its launch in 2006, Twitter has undergone a series of major transformations — from a public company to a privately owned platform under Elon Musk, and eventually, its rebranding as X. The timeline below outlines the key milestones that have shaped the ownership and strategic direction of the platform, culminating in its recent merger with Musk’s AI company, xAI.

2006 – Twitter is founded.
March 2022 – Elon Musk buys a 9.1% stake in Twitter.
April 2022 – Musk offers to acquire Twitter for $44 billion.
October 27, 2022 – Musk finalizes the acquisition and becomes CEO.
October 28, 2022 – Top executives (Parag Agrawal, Ned Segal, Vijaya Gadde) are fired.
November 8, 2022 – Twitter’s ticker symbol $TWTR is delisted from the NYSE.
July 2023 – Musk launches xAI, his artificial intelligence company.
July 2023 – Twitter is officially rebranded as X.
March 2025 – xAI acquires X in an all-stock deal valued at $113 billion.
Post-2025 – Elon Musk remains the primary owner of the unified company combining AI, social media, and digital infrastructure.

Twitter’s Mission Statement

Twitter’s mission statement is “To give everyone the power to create and share ideas and information instantly without barriers.”

How Twitter makes money

Currently, X operates a multi-revenue stream business model. While it continues to rely on advertising, the platform has expanded its monetization approach with paid subscriptions and data licensing. The company offers free access for individual users and businesses, but monetizes through a growing ecosystem of tools, partnerships, and AI integrations. The following are the main ways X makes money:

Sale of Advertising Services

X has over 500 million monthly active users globally. This vast user base attracts advertisers who want to showcase their products and services to targeted audiences. Brands pay X to place their ads on the platform, where algorithms ensure they appear in front of users most likely to engage. The main types of advertising on X include:

Promoted Ads: These resemble regular posts but are labeled “promoted.” They appear based on user preferences, behavior, and interests. Advertisers can choose between pay-for-impression or pay-for-performance models.

Promoted Accounts: This format helps brands grow their follower base by appearing as suggestions in the “Who to Follow” section. Targeting can be refined by location, demographics, and interests.

Promoted Trend Takeovers: Advertisers can sponsor trending topics, placing their message in one of the most visible parts of the platform. These trends show up in home timelines, search results, and notification tabs, giving brands massive reach.

Advertising remains X’s primary revenue stream, although its share has declined slightly in recent years. In 2021, ads generated 89% of total revenue. Today, with a stronger focus on subscriptions and AI tools, that percentage is evolving.

Data Licensing Services

With hundreds of millions of posts daily, X offers a rich trove of real-time public data. The platform licenses access to this data — often referred to as the “Firehose” — to partners that want to analyze trends, consumer behavior, and public sentiment.

Through its data licensing agreements, X allows companies to access both historical and live data for insight generation. These partners can use the data for research, product development, market analysis, and more. Personal user data may be shared with advertisers, but only with user consent.

Data licensing remains a secondary but stable source of revenue, accounting for roughly 10–15% of the company’s income depending on the year.

Subscription Service

With the rebranding to X, the former Twitter Blue evolved into a broader offering of tiered subscriptions:

Basic
Premium
Premium+

These plans unlock features like:

Grok (xAI’s built-in chatbot assistant)
Ad-free feeds (Premium+ only)
Longer posts and videos
Profile customization
Monetization options for creators

X’s subscription model is now a core focus of its monetization strategy, especially after integrating AI tools directly into the platform. Prices vary by region and tier, but most subscriptions range from $3 to $16/month.

Twitter’s Business Model Canvas

The Twitter Business Model can be explained with the business model canvas below:

Twitter Business Model Canvas - Twitter Business Model

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Twitter’s Customer Segments

Twitter’s services are available worldwide, therefore, its customer segment is made up of people all over the world. Twitter’s customer segment consists of the following:

Users: Twitter users make up a major part of its customer segment. As of Q4 2021, Twitter had 217 million monetizable daily active users (38 million users in the U.S. and 179 million international users). Twitter users are the people who sign up on the Twitter website to use its services for different purposes. About 70.40% of the total number of Twitter users are male and the remaining 29.6% are female. Also, the larger part of Twitter users is between the ages of 25-48 (38.5%). While users do not pay to use Twitter’s services, Twitter cannot generate any revenue without their existence on its platform. There are two major categories of Twitter users. These include:
Personal Users: Personal users on Twitter are private individuals who use Twitter to connect with other people around the world and for entertainment purposes. These users do not have affiliations with any brands or businesses. They are regular people whose accounts reflect their views, likes, and personality. This category of users makes up the largest part of the total number of users on the Twitter platform.

Professional Users: Professional users on Twitter are people or entities that use Twitter for commercial purposes. Such users are expected to use professional accounts on Twitter. Professional accounts allow professionals to access tools like Professional profiles, Twitter shopping, quick promote, and other features that make their jobs easier. Until 2022, Twitter users had to apply directly to Twitter before they could convert their accounts to professional accounts. However, on 29th March 2022, Twitter announced that any Twitter user can switch to a professional account through their profile settings.

There are two types of professional accounts – business and creator. The professional business account is best suited for brands, businesses, retail stores, and organizations that are trying to build an online presence or market their goods and services. The professional creator account on the other hand is meant for public figures (politicians, athletes, movie stars, etc.), artists, content creators, social media influencers, etc. While converting to a professional account on Twitter is completely free, some criteria must be met. Users who wish to convert to a professional account must have a complete profile with a display name, a profile picture, and a bio (These details must be authentic and clearly stated). Also, users must not have a history of repeated violations of Twitter’s user agreement. Only existing Twitter accounts can be converted to professional accounts.

Businesses and Advertisers: This part of Twitter’s customer segment account for Twitter’s source of revenue. Twitter has a large user base, which is a goldmine for brands and businesses that want to market their goods and services to millions of people around the world. To showcase their products and services to users on the Twitter platform, advertisers pay Twitter. Twitter has several types of ads that it uses to target its users and satisfy its advertisers. Twitter helps its advertisers to build brand awareness, nurture customer consideration, and drive sales and conversion. To place ads, advertisers have to go to Twitter Ads, add a payment method, create an ad, then launch and optimize the ads created. Some businesses also subscribe to buy data licensing services. While this category of Twitter’s customer segment is responsible for Twitter’s major source of revenue, it would not exist without the users.

Developers: This refers to the people that use Twitter’s API to build, integrate, and improve apps through Twitter’s platform. Although this is Twitter’s smallest customer segment, it is very important.

Twitter’s Value Propositions

X, formerly Twitter, offers distinct value to its key stakeholders: users, businesses/advertisers, and developers. These value propositions support user growth, monetization, and retention — all central to its evolving business model as it transforms into an AI-powered super app.

Value Propositions to Users

X serves over 500 million users globally, offering real-time information, entertainment, and community — now enhanced with intelligent tools and AI assistance.

Free and Global Connectivity: Users can join X for free and connect with a global audience, including influencers, celebrities, and public figures — breaking social and class barriers.
Customization & Control: X allows deep customization of timelines, profile design, and interactions. Users can filter content, mute or block others, and choose who can reply to or view their posts.
Convenience & Real-Time Updates: X remains a fast and reliable source for real-time news and insights. The platform also helps creators and businesses manage content and track engagement easily.
Privacy & Safety Tools: Features like private messaging, tweet visibility controls, and safety settings help users manage what they see, share, and receive.
Authenticity Through Verification: Verified checkmarks are now part of paid subscriptions, helping users and creators build trust and protect themselves from impersonators. Unlike before, verification is now tied to subscription tiers (Premium or Premium+).
X Spaces (formerly Twitter Spaces): Users can host or join live audio discussions for real-time engagement and idea-sharing.
Grok AI Integration: Subscribers get access to Grok — xAI’s AI chatbot — directly inside X, allowing them to generate content, summarize discussions, and interact with a smart assistant in real time.

Value Propositions to Businesses and Advertisers

Businesses and advertisers use X to reach targeted audiences, track campaign performance, and leverage AI-driven tools to improve results.

Global Reach & Publicity: X enables brands to amplify their message to millions of users across different demographics and regions.
Flexible Ad Pricing: X supports campaigns of all sizes. Advertisers can set custom budgets and are only billed based on engagement (clicks, likes, follows, etc.).
Advanced Targeting Capabilities: Ads can be tailored by location, interests, behavior, and demographics — maximizing ROI and relevance.
Simple Setup & Self-Serve Ads: Creating and launching ads is straightforward, accessible even to small businesses without dedicated marketing teams.
Robust Analytics: Tools like X Pixel offer performance tracking and conversion insights. Advertisers can monitor user actions post-ad exposure.
Data Access & Licensing: Businesses can license access to public X data for insights on consumer behavior, brand sentiment, and trend analysis.
Creator Monetization Ecosystem: Businesses can now partner with verified creators and influencers on X, thanks to built-in monetization features like ad revenue sharing and paid subscriptions.

Value Propositions to Developers

Developers remain an essential part of X’s ecosystem — building tools, apps, and integrations using the platform’s infrastructure.

Powerful APIs: X offers extensive APIs to help developers analyze conversations, build customer service tools, track events, and monitor brands.
AI & Real-Time Data Access: Developers can tap into both historical and live data streams — useful for innovation, research, or product development.
Learning & Knowledge Sharing: Through forums and dev resources, X enables developers to stay updated on trends and best practices.
Networking & Collaboration: X helps developers connect with peers, potential employers, and companies through a platform deeply integrated into the tech community.

Twitter’s Channels

Twitter’s channels consist of:

Websites: Twitter’s websites are its primary channel of distribution through which its users access its services. Advertisers can place their ads through Twitter’s website, developers can get APIs directly from Twitter’s website, and people can sign up and create an account through Twitter’s website. Twitter also has a web app through which its users can access their accounts.

Mobile Applications: Twitter has mobile applications designed to work on different kinds of operating systems, including Android and iOS. These apps can be downloaded from the Google Play Store or the Apple App Store, as the case may be. Features of the Twitter app include home, search, notifications, messages, etc. Users can access their Twitter account through its mobile application. They can also tweet, retweet, reply to tweets, and like tweets on the mobile application. Tweets from iOS devices are marked “Twitter for iPhone” while tweets from Android devices are labeled “Twitter for Android”.

Twitter’s Customer Relationships

Twitter has measures in place through which it acquires and retains users. Twitter’s customer relationships include:

Customer service: Twitter provides an automated self-service for its users;
Website: Twitter has an insights section on its website that caters to all frequently asked questions that a user might have. It also includes articles and a research report;
Social media support: Twitter provides personal support on social media to some of its users who might be experiencing some difficulties with some of its services;
E-mail support: Twitter also provides e-mail support to its users. If a user signs up to Twitter’s platform with their e-mail, they are eligible to receive e-mails from Twitter.

Twitter’s Revenue Streams

Twitter’s revenue streams consist of:

Ad Revenue: This is Twitter’s major revenue stream. Twitter has a large user base, which brands and businesses can take advantage of to market their goods and services to millions of people all over the world. To place different types of ads on Twitter’s platform, these brands and businesses have to pay Twitter. Twitter allows advertisers to target users based on several factors to ensure the effectiveness of the ads;

Data Licensing: This is the second most important revenue stream for Twitter. Twitter’s large user base provides it with a lot of public data, which Twitter refers to as Firehose. This data of millions of people is beneficial to brands and businesses as they can analyze them to know more about Twitter users (their potential customers) and develop methods to meet their needs. To generate more revenue, Twitter shares this data with businesses and brands who request access. Twitter’s data licensing is legal, and it does not share its users’ personal data without their consent;

Subscription Fees: While this feature of Twitter is still under development and limited to particular geographical locations, it is still considered a stream of revenue. Twitter has a service called Twitter Blue, which requires a subscription fee of $4.99 to be accessed. Twitter Blue offers Twitter users some premium features for a monthly subscription. This service is only available in the U.S., Canada, Australia, and New Zealand.

Twitter’s Key Resources

Twitter’s key resources include:

Users: Twitter has millions of active users who use its services as they deem fit. They are a major human key resource for Twitter and the services it provides. Without its users, Twitter’s revenue model would fail, and the platform would cease to exist;

Platform: Twitter’s platform consists of its websites, web apps, and mobile apps through which its users access its services;

Content: There are different types of Twitter users and each of them uses the platform for different purposes. While business owners use the Twitter platform to build an online presence and amplify their goods and services, private users use Twitter to read engaging content tweeted by other users. Engaging content is an intellectual key resource for Twitter;

Advertisers: Twitter can run its platform through the revenue it generates. Advertisers represent the major source of revenue for Twitter, therefore, they can be considered a financial key resource of the social networking service;

Human Resources: This refers to the people working at Twitter to ensure that the platform is up and running every time. Twitter employees are responsible for the update and maintenance of the platform. There are about 3,700 employees at Twitter after a 50% slash of the workforce following the Elon Musk takeover.

Twitter’s Key Activities

Twitter’s key activities consist of:

Development and maintenance of websites, web apps, and mobile apps
Product Marketing
Maintenance of user data
Content Moderation
User base expansion
Update of existing products
Customer service

Twitter’s Key Partners

Twitter’s key partners include:

Companies (including Bloomberg, Hootsuite, Sprinklr, BlackSwan technology, Brandwatch, etc.)
Shareholders
Advertisers
Users
Marketing partners

Twitter’s Cost Structure

The cost incurred by the development and maintenance of Twitter’s platform, among other things, makes up Twitter’s cost structure. Twitter’s cost structure consists of:

Physical structures and facilities (offices around the world)
Cost of revenue
Sales/ Marketing
Research and development
Platform maintenance (website, web app, and mobile app)
Traffic acquisition
Employee salaries
General and Administrative costs
Legal fees
Customer service

Twitter’s competitors

There are several social media services available, therefore, Twitter has a lot of competition. While some of these competitors do not offer the same service, they are social media services that offer similar services. Twitter is the 15th biggest social media service in 2022 according to the number of monthly active users (MAUs). Twitter’s competitors include

Parler: Parler is an American social networking service that is commonly associated with conservatives. The social media app has been described as an alternative platform to Twitter. Some of Parler’s users are people who have been previously blocked on mainstream social networks such as Twitter. Although created in 2018, Parler has witnessed rapid growth and currently has about 20 million followers. Parler is said to be a free speech-focused app and is headquartered in Nashville, Tennessee. Parler poses a threat to Twitter’s domination because of its free speech policy. Twitter has stringent rules that have led to the permanent banning of public figures, such as Donald Trump, the former President of the United States of America. However, Parler claims to support free speech, and it accommodates people who have kicked off Twitter.

Gab: Gab is an American microblogging and social networking service that is considered a far-right app. Gab was founded in 2016, but was not launched until 2018. The app is said to be a free speech social network and its mission statement is to “defend, protect, and preserve free speech online for all people. Gab is very similar to Twitter, and it works like a mixture of Facebook and Twitter. Its users can publish posts (also known as “gabs” with a 300-character limit), join groups, send private messages, buy products, and Livestream. Gab is a haven for people who have been permanently banned on Twitter. It also reported a surge in the number of its user base when Parler, a competitor, was taken off the internet, a short while after the January 6 Capitol siege in the U.S. Unlike Twitter, Gab does not moderate the content posted by its users. However, it claims to block posts that contain illegal activity, pornography, threats of violence, child exploitation, doxxing, and spam. Gab is a very controversial app because it has been accused of being used to spread antisemitic comments, Neo-Nazism, racism, white supremacy, conspiracy theories, etc under the guise of free speech. While there have been several attempts from big tech companies to bring down the social networking service, the company remains afloat.

GETTR: Gettr is a social media platform and microblogging site that has its headquarters in New York, U.S. Gettr was founded by Jason Miller, a former aide to former President, Donald Trump, and was officially launched on the 4th of July 2021. The social media platform has been said to be a site for American conservatives. Shortly after its launch, Gettr experienced several issues such as hacking of the platform and some high-profile accounts, uploading of content that violated the terms of service, and a flood of pornography. However, it has since been able to resolve these issues since then. Gettr is a lot like Twitter, however, it claims it is committed to defending free speech, fighting cancel culture, promoting common sense, challenging social media monopolies, and creating a true marketplace of ideas.

Truth Social: Truth Social is an American social media platform founded by former U.S. President, Donald Trump. The social media platform was created by Trump Media & Technology Group, an American media, and technology company owned by Donald Trump. Like Parler and Gab, Truth Social was created to serve as a competitor to Twitter and Facebook while providing an uncensored alternative. Truth Social was founded on the 20th of October 2021, however, the service was not launched until the 21st of February 2022. Currently, the Truth Social media platform is only accessible to users in Canada and the United States of America. Truth Social is a simulation of Twitter as users can post truths (tweets), re-truth (retweet), like content, and comment. The social media platform, like Twitter, has features like a home tab, search, notifications, and direct messages. The app is available on both the android and iOS operating systems.

MeWe: MeWe is a social media network and service available globally with its headquarters in Culvert City, California, U.S. Owned by Sgrouples Inc., a company that provides social networking applications, MeWe was founded on 16th May 2022. Although the MeWe platform’s interface is similar to that of Facebook, the company claims it is “anti-Facebook” because it focuses on data privacy. MeWe delivers its services through its platforms (website and mobile apps). These platforms possess the common features seen in most social media and social networking platforms. On MeWe, users can post text and images to their feed, react to other users’ posts with emojis, create groups, post animated GIFs, and chat with other users using private messages. As a competitor to Twitter, MeWe has also seen a large influx of users from other social media networks, cracking down on misinformation, incitement, and threats of violence.

Twitter’s SWOT Analysis

To understand the reason why the Twitter Business Model is a success, we have to examine the analysis of its strengths, weaknesses, opportunities, and threats. The following is a comprehensive SWOT analysis of the Twitter Business Model:

SWOT Analysis of Twitter - Twitter Business Model

Twitter’s Strengths

Brand recognition: X, formerly Twitter, has undergone a major rebrand, replacing its iconic bird logo with a minimalist ‘X’. While still transitioning in global recognition, the bold identity shift positions the platform as an ‘everything app’ beyond social media.

Influence: Twitter is one of the most influential social media networks in the world. It is a source of authentic news to many as it is home to several journalists and media houses. Unlike some other social media apps, Twitter users are made up of people of different generations (Millennials and Gen-Z). This is uncommon among social media services, and it shows the amount of influence Twitter has. Twitter is also used to amplify social issues and get people involved in a cause. Hashtags on Twitter are so powerful that they can be used to mobilize communities, expose the evils of government, and address injustice.

First mover’s advantage: Created in 2006, Twitter is one of the first microblogging platforms in the world. It is older than most of its competitors, hence its influence in the market.

Loyal customer base: As of the second quarter of 2022, Twitter had 237.8 million daily users. Despite the series of controversies that Twitter has been involved in the past, it is still highly preferred by celebrities, government officials, organizations, and several private individuals for business, publicity, and entertainment purposes.

Strong market share: A market share is the percentage of an industry that is earned by a particular company over a specific period. As one of the biggest microblogging and social media platforms, Twitter has a 25.45% market share. This puts the social media platform in a significant position in the tech industry.

Ownership Synergy and AI Integration: Integration with xAI gives X a powerful strategic edge — combining a vast real-time data network with cutting-edge AI capabilities, enabling smarter monetization and innovation.

Twitter’s Weaknesses

Dependence on Ads: While X historically relied heavily on advertising, recent shifts toward paid subscriptions, AI-powered features, and user monetization are helping diversify revenue — though ad dependence remains a risk.

Saturation of the U.S. market: Although Twitter’s services can be accessed around the globe, the company is still heavily reliant on its U.S. market. In 2019, Twitter generated $3.45 Billion, however, 56% ($1.9 billion) of Twitter’s revenue for 2019 was from the U.S. If Twitter loses the majority of its users from the U.S., this might result in its revenue model crashing.

Algorithm: Twitter users have complained severely about its faulty algorithm. Sometimes, users might encounter irrelevant/fake tweets and problems with the search functionality. Twitter has been struggling to fix this problem and this is one of its major weaknesses.

Polarizing Leadership: Elon Musk’s leadership style has been both a strength and a source of controversy. His decisions often spark user backlash and brand hesitancy among advertisers.

High Operational costs: Twitter spends a lot of money to ensure that its products are satisfactory for every member of its customer segment. This is to make sure that the microblogging giant is always a step ahead of its competitors. However, this might decrease productivity, increase operational costs, and threaten profitability.

Misuse: Twitter can be used negatively by some users to troll other users, spread misinformation, and carry out other illegal activities. If this happens consistently, it might cause a lot of users to leave the platform.

Twitter’s Opportunities

AI-Powered Personalization: With access to real-time user data and xAI’s advanced models, X has the opportunity to deliver hyper-personalized user experiences, increasing engagement and retention.

Grok and Super App Vision: Expansion of Grok and Super App Features: By integrating Grok (its proprietary AI assistant) and developing tools for payments, video, messaging, and news, X is moving toward becoming a multifunctional super app.

Diversification: Twitter needs to look into the creation of other products or the provision of other services that can serve as another revenue stream. For example, Twitter can enter the music or video streaming service market. This will offer Twitter more opportunities and provide an avenue to make more money.

Penetration of existing markets: Although Twitter is a worldwide service, it is more dominant in some locations compared to others. For example, the U.S. alone contributes more than 50% of the total annual revenue generated by Twitter. If Twitter focuses on trying to penetrate more international markets, it can double its revenue.

Marketing: While Twitter can be considered successful with over 400 million users, it can still do better by doubling the number of users it has. This is made possible through intensive marketing and value proposition.

Retain users: With the emergence of competitors on the rise, Twitter should ensure that it retains its customers by consistently providing value, improving user experience, and increasing user satisfaction.

Twitter’s Threats

Stiff Competition: Although Twitter is one of the first microblogging platforms to exist, it now has fast-growing competitors. Since other platforms are offering the same services Twitter does, it is easy for users to quit Twitter and join a competitor to register their displeasure.

Government Restrictions: Twitter is so influential that autocratic governments sometimes might ban their citizens from accessing Twitter’s services in a bid to curb freedom of speech or prevent their citizens from organizing a revolt against them.

Regulatory and Legal Scrutiny of AI Integration: Regulatory Scrutiny of AI & Data Use: As X integrates advanced AI and uses real-time user data for training models, it risks increased scrutiny over privacy, security, and ethical use — especially in regions like the EU.

Legal battles: Twitter has been accused severally of selling user data. On the 25th of May 2022, Twitter was fined $150 million by the Federal Trade Commission and the United States Department of Justice for using its users’ phone numbers and email addresses for targeted advertising contrary to the security reason they gave earlier.

Content Moderation Challenges: With reduced moderation policies and a broader free speech stance, X risks becoming a breeding ground for misinformation, hate speech, and regulatory fines.

-> Read More About Twitter’s SWOT Analysis

Conclusion

X, formerly known as Twitter, remains one of the most influential digital platforms in the world. It is trusted by government officials, celebrities, public figures, media outlets, and millions of individuals who use it for real-time news, conversation, and connection. Under Elon Musk’s leadership, the platform has undergone a dramatic transformation — not just in name, but in purpose.

Once reliant almost entirely on advertising revenue, X is now building a diversified business model with the introduction of subscription tiers, creator monetization, and advanced AI tools like Grok, developed by Musk’s artificial intelligence company, xAI. These changes are part of Musk’s larger vision to turn X into an “everything app” — blending communication, content, payments, and intelligence into one seamless platform.

Despite its legacy and global reach, X faces growing competition, public scrutiny, and regulatory challenges. Controversies around content moderation, leadership decisions, and shifting business strategies have also opened the door for rival platforms to emerge.

Even so, the merger with xAI and the push toward AI-native features position X at the frontier of digital innovation. Its success now depends on how well it can balance bold ambition with user trust, product innovation with platform safety, and freedom of expression with responsible governance.