X to sue several big brands over advertising boycott
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Elon Musk’s X is suing former advertisers.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04Wall Street snapped a three-day losing streak
00:07as investors reassessed the reasons behind the meltdown.
00:10In a note to clients, Goldman Sachs pointed to
00:13low risk of a U.S. recession
00:15and described the recent selling spree
00:17as a buying opportunity.
00:19With that said, all eyes are now on earning season.
00:22Yum! Brands, parents of KFC, Taco Bell, and Pizza Hut,
00:26beat profit forecasts.
00:27However, like many of its peers,
00:29it is struggling to find the right price point
00:32for inflation-weary consumers.
00:35Up next on the earnings calendar,
00:36Walt Disney, Warner Bros., Discovery, Lyft, and Shopify.
00:41In other headlines, X, owned by Elon Musk,
00:44is suing a group of advertisers
00:46accusing it of antitrust conspiracy.
00:49The lawsuit accuses the World Federation of Advertisers,
00:53including Unilever, Mars, and CVS,
00:55of illegally banding together to withhold ad dollars
00:59from a site formerly known as Twitter.
01:01X CEO Linda Iaccarino said in a statement,
01:03quote, people are hurt
01:05when the marketplace of ideas is constricted.
01:08No small group of people should monopolize
01:10what gets monetized.
01:12The lawsuit claims X lost billions in ad sales
01:16after a 2019 campaign known as
01:18the Global Alliance for Responsible Media
01:21urged advertisers to use their buying power
01:24to impact the spread of, quote,
01:26illegal or harmful content on digital media platforms.
01:30Advertisers have been at odds with X
01:33ever since Musk, a lightning rod for controversy,
01:36took over in 2022.
01:38Musk has relaxed content moderation,
01:40putting advertisers at risk of seeing their products
01:43next to problematic posts.
01:45According to Bloomberg,
01:46sales at X have plunged 50% under Musk's leadership.
01:51That'll do it for your daily briefing
01:53from the New York Stock Exchange.
01:54I'm Conway Gittens with The Street.