X Struggles as Advertisers Plan to Cut Spending X Struggles as Advertisers Plan to Cut Spending

Written By Michael Gary Scott

Elon Musk’s foray into the realm of social media with Twitter, now X, has been nothing short of tumultuous. Recently, reports have surfaced indicating that advertisers are contemplating a significant reduction in their spending on the platform.

X’s increasing emphasis on free speech, while commendable to some, has not been well-received by advertisers who fear association with controversial content. A study by Kantar revealed that 26% of surveyed marketers are planning to scale back their ad investments on the platform.

Since Musk’s group injected $44 billion into acquiring Twitter in 2022, concerns about brand safety have loomed large. While X boasts a 99% brand safety rating according to internal metrics, only 4% of marketers perceive it as “brand safe.” In contrast, 39% considered Google to be a safer advertising environment.

A New Strategy for X

To counteract this exodus of advertisers, X is exploring a novel approach: a specialized video-viewing platform for advertising. By aligning with prominent online video personalities like MrBeast, X aims to revolutionize its offerings as it pivots towards a “video first” orientation under the leadership of CEO Linda Yaccarino.

This innovative tool also positions X as a formidable competitor to YouTube, a platform facing internal discontent among content creators. X’s established user base could propel it as a potent rival to YouTube’s dominance in the video-sharing sphere.

Examining Tesla’s Outlook

While investment opportunities in X remain out of reach for the general public due to its private status, Tesla (TSLA) stands as another venture under Elon Musk’s umbrella. Analysts have issued a Hold consensus rating on Tesla, comprising 10 Buy ratings, 14 Holds, and seven Sells within the last three months.

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Following a 9.26% decline in share price over the past year, the average TSLA price target of $211.46 per share implies a potential 7.52% downside risk for investors.


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