On Tuesday, Snap Inc responded to the company's second-quarter profit warning issued on Monday night with a 43 per cent plunge in its share price, an ominous sign for Twitter.

Twitter shares fell more than 5% after Snap Inc's profit warning

Although Snap Inc Thunder has put many companies that rely on digital advertising into trouble, Facebook Inc's owner, Meta, has lost $50 billion in market value, and Alphabet Inc-CL C's parent company, Alphabet, has lost nearly $60 billion, the two technology giants have a stronger foundation, a wider range of customers and less exposure to a few big brands. For example, Facebook Inc and Instagram sucked away advertising revenue from small businesses, while Alphabet Inc-CL C sucked up search advertising.

However,The similarity between Twitter and Snap Inc is extremely high, and both of their revenue sources are brand advertisers.What's more troublesome is thatSnap Inc's growth rate is even faster.

In the first quarter of this year, Snap Inc's revenue rose 38 per cent year-on-year to $1 billion, while the number of daily active users rose 18 per cent to 332 million. By contrast, Twitter's revenue grew at half the rate of Snap Inc's in the first quarter, and the company recalculated its active user data for the past few quarters and found that it was overcounted and adjusted the total.

With Twitter's share price falling further, Musk's $44 billion acquisition is on a shaky footing, delaying the offer and waiting for Twitter boss Parag Agrawal to provide more data on fake accounts.

Twitter shares have fallen 16% so far this year. After Snap Inc announced the profit warning on Tuesday, Twitter shares fell 5.5% to $35.76, well below Musk's $54.20 offer, according to Reuters Breakingviews.That means there is about a 30% chance that the deal will be completed.

Sandwiched between Musk and Snap Inc, the Twitter shareholders' meeting on Wednesday was not easy.

After Snap Inc cut his guidance for Twitter's shareholders' meeting on Wednesday, local time, shareholders will be eager to hear management comments on whether the company's advertising revenue will be affected like Snap Inc in the next quarter. This will be particularly important when there is uncertainty about Mr Musk's acquisition.

Twitter recently fired two senior executives and froze hiring in response to macroeconomic conditions and uncertainty surrounding acquisitions.

The acquisition has been suspended, and for Musk, the fall in Twitter's share price provides an opportunity to negotiate a lower purchase price.

According to Barron Weekly, Daniel Ives, an analyst at investment bank Wedbush, believes in a research report that Snap Inc's performance guidance has intensified the market pressure on technology stocks and may prompt the Twitter board to accept a lower offer.

Ives added that a lower offer might be a better option for Twitter than to remain independent, while trying to fight Mr Musk over the withdrawal of the offer and allay investor concerns about user metrics.

Given that Mr Musk has the largest stake in the company, investors will be watching closely to see if Mr Musk will attend the shareholder meeting in virtual or other ways.

A Twitter spokesman said Wednesday's annual general meeting will not include a vote on the upcoming acquisition. The company plans to hold a special shareholder meeting later to vote on the acquisition, but it has not been confirmed.