X to sue several big brands over advertising boycott

The Street

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.

Transcript

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.

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