Elon Musk Thinking About Pulling Twitter/X Out Of Europe? Here's Why He Might Do It
Portfolio Pulse from Chris Katje
Elon Musk is reportedly considering removing social media platform X (formerly Twitter), which he acquired for $44 billion, from Europe due to regulatory issues related to the Digital Services Act. The European Union has targeted X over compliance issues, and violations could result in fines of up to 6% of a company's total revenue. Europe represents around 9% of X's global monthly active users. Meta Platforms (NASDAQ:META) previously made a similar move in Europe for its social media platform Threads.
October 19, 2023 | 2:59 pm
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NEUTRAL IMPACT
Meta Platforms previously made a similar move in Europe for its social media platform Threads, which could indicate a trend in tech companies' response to European regulations.
While the news directly impacts Twitter, it also indirectly impacts Meta Platforms as it indicates a potential trend in tech companies' response to European regulations. However, as Meta has already made a similar move, the impact on its stock price is likely to be neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Elon Musk's consideration to remove X (formerly Twitter) from Europe due to regulatory issues could impact Twitter's stock negatively in the short term.
The potential removal of X from Europe due to regulatory issues could lead to a decrease in user base and revenue, which could negatively impact Twitter's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100