In April 2023, Elon Musk, the CEO of X, tweeted an antisemitic meme. This led to a number of major advertisers, including Disney, General Motors, and Ford, pulling their ads from the platform. In May 2023, Musk went on a profane tirade on Twitter, calling the advertisers who had pulled their ads "morons" and "cowards." This only further alienated advertisers, and many more companies have since pulled their ads from X.
As a result of the loss of advertisers, X is now facing a significant revenue shortfall. The company has estimated that it will lose up to $75 million this quarter as a result of the advertiser exodus. The company is now scrambling to find new advertisers, but it is proving to be a difficult task. Many companies are still wary of advertising on X, given Musk's unpredictable behavior.
In addition to the loss of advertisers, X is also facing a number of other challenges. The company is facing increased competition from other social media platforms, such as TikTok and Instagram. Additionally, X is facing a number of regulatory challenges, as governments around the world are scrutinizing the company's content moderation practices.
It remains to be seen whether X will be able to overcome these challenges. However, it is clear that the company is facing a number of headwinds, and its future is uncertain.