Elon Musk's X Faces Ad Revenue Plunge To Nearly $2.5B This Year Amid Content Moderation Woes
Portfolio Pulse from Ananya Gairola
Elon Musk's social media platform, X (formerly Twitter), is experiencing a significant drop in ad revenue for 2023, with projections of $2.5 billion compared to $1 billion per quarter in 2022. The decline is attributed to advertisers' concerns over content moderation and Musk's endorsement of extremist views. Major advertisers like Apple Inc. (AAPL) and Walt Disney Co. (DIS) have paused their ad spending on the platform. X's valuation has also reportedly dropped below 50% of Musk's purchase price.
December 13, 2023 | 3:24 am
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NEUTRAL IMPACT
Apple Inc. has halted advertising expenditure on X due to concerns over the platform's content moderation policies under Elon Musk's leadership.
While Apple's decision to halt advertising on X reflects concerns over the platform's direction, the impact on AAPL's stock is likely to be minimal in the short term given Apple's diverse marketing channels and the relatively small proportion of its ad budget likely spent on X.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Walt Disney Co. has also stopped its advertising spending on X due to the platform's controversial content moderation under Musk.
Disney's suspension of ads on X is a response to the platform's content policies, but the short-term impact on DIS stock is likely limited as the company has a vast array of advertising avenues and the decision is more of a brand image consideration than a direct financial one.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50