The social media firm X, also known as Twitter, may lose up to $75 million in ad revenue by the year’s end. Since owner Elon Musk endorsed an antisemitic theory, major advertisers like IBM, Apple, and Disney have paused marketing campaigns. Over 200 companies, including Airbnb, Amazon, Coca-Cola, and Microsoft, have either halted or considered pausing their ads on X. X’s sales team documents reveal the significant effect these lapses have had on estimated revenue through the year’s end.
During the final quarter of the year, X typically sees a strong surge in ad revenue, but Mr. Musk’s behavior has caused many advertisers to be hesitant. While X has tried to entice advertisers back, internal documents show over 100 brands have fully paused their ads, and dozens more are at risk. Large, influential companies like Airbnb, Uber, Microsoft, Amazon, and Google have scaled back their spending. Chris Christie called out Mr. Musk for spreading hate for his endorsement of an antisemitic post.
Despite ongoing criticism from brands and political groups, X’s CEO Linda Yaccarino remains adamant that X stands for free speech. She believes that operating under external pressure is not how the company should conduct its operations. Mr. Musk is vocal on the issue and praises those who continue to advertise on X while promising to donate revenue from advertisements associated with the Gaza conflict to hospitals in Israel and the Red Cross/Crescent in Gaza.