Elon Musk is continuing to struggle in his social media competition with Meta CEO Mark Zuckerberg. Musk’s X platform is facing numerous controversies and financial difficulties, which could potentially jeopardize its position against Meta’s social media dominance.
What Happened: Musk is reportedly struggling with X’s revenue generation. His aggressive stance towards advertisers and the spread of misinformation on the platform have resulted in a significant drop in revenue.
As per internal documents cited by The New York Times, X’s revenue experienced a 25% decline from the first quarter of the year to $114 million, a 53% decrease from the same period last year, reports The Insider.
Meanwhile, Meta has witnessed a surge in advertising revenue, enabling it to venture into new areas such as artificial intelligence. The company reported a 22% year-on-year increase in its second-quarter revenue, amounting to $39 billion.
Also Read: Tech Titans Clash: Mark Zuckerberg Rises As Elon Musk Falters In Billionaire Rankings
Earlier this week, Musk and X CEO Linda Yaccarino announced a lawsuit against the Global Alliance for Responsible Media (GARM), a trade group, over a boycott that has cost X billions of dollars.
Musk referred to this move as a “war” with advertisers, which could potentially escalate tensions with them.
Furthermore, X has been scrutinized for its role in disseminating false information. A study by the Center for Countering Digital Hate revealed that X contributed to generating 434 million views for posts of far-right figure Tommy Robinson during riots in Britain. Musk himself has faced criticism for amplifying misinformation on the platform.
Why It Matters: These developments present a significant hurdle to Musk’s ambition of positioning X as a legitimate competitor to Zuckerberg’s social media platforms.
The ongoing controversies and financial challenges could potentially undermine X’s standing in the social media landscape, thereby strengthening Meta’s position.
The outcome of this competition could have far-reaching implications for the future of social media and digital advertising.
Read Next
Don’t Look Now, But Zuckerberg’s Threads Is Picking Up Steam
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
