Linda Yaccarino, CEO of X, recently revealed plans for users to engage in trading and investing directly on the platform, marking a significant move in Elon Musk’s vision of transforming the former Twitter into an “everything app.”
Key Highlights:
- X will integrate trading and investment options as part of its broader strategy in financial services.
- The platform’s new digital wallet, known as X Money, will launch in partnership with Visa.
- Regulatory challenges and ongoing advertiser concerns continue to threaten the company’s financial revival.
During a presentation at the Cannes Lions advertising festival, Yaccarino discussed the upcoming financial services initiative, which will include digital payment solutions, commerce tools, and potentially a branded credit or debit card. “You’ll be able to come to X and manage your entire financial life on the platform,” she told the Financial Times. “Whether I can pay you for the pizza we shared last night or make an investment or a trade—that’s the future.”
X Set to Facilitate Trade and Investment via Visa Partnership
The focal point of this development is X Money, a digital wallet and peer-to-peer payment service expected to roll out in the U.S. later this year alongside Visa. This service aims to support activities such as tipping creators, purchasing merchandise, and storing value.
However, the financial expansion could attract regulatory scrutiny, as X may face hurdles regarding licensing, compliance with anti-money laundering laws, and general operational oversight within financial markets.
In addition to regulatory concerns, the company is also grappling with a challenging advertising landscape. Following Musk’s $44 billion acquisition in 2022, numerous advertisers stepped back due to worries over moderation policies and content safety. While Yaccarino asserted that 96% of previous advertising clients have returned, skepticism persists within the industry.
Furthermore, Yaccarino addressed allegations from reports in the Wall Street Journal suggesting that X pressured brands into advertising commitments. She characterized these claims as “hearsay,” relying on unnamed sources for her defense. The report had indicated that major brands, including Verizon and Ralph Lauren, consented to ad agreements under duress. “It’s unnamed sources, random third-party commenters,” she stated.
X currently faces a federal antitrust lawsuit from the Global Alliance for Responsible Media and other players in the advertising industry. The company accuses this group of coordinating a boycott under the guise of promoting online safety. Some brands, such as Unilever, have since been removed from the lawsuit and resumed advertising in October.
Research by eMarketer anticipates that X’s revenue could reach $2.3 billion this year, although this amount is still significantly less than the $4.1 billion recorded in 2022.
Elon Musk Sells X to xAI
In a recent move, Elon Musk sold his social media platform X to his artificial intelligence company, xAI, in an all-stock transaction that values xAI at $80 billion and X at $33 billion, which includes $12 billion in debt. This announcement coincided with a U.S. judge’s denial of Musk’s motion to dismiss a class-action lawsuit that alleges he misled shareholders during the acquisition of Twitter.
The sale has drawn criticism, with observers like Adam Cochran of Cinneamhain Ventures warning that it increases legal risks for xAI and raises concerns regarding the structure of the transaction. Cochran argued that Musk overvalued xAI to take on X while transferring liabilities and potentially user data to the AI company, criticizing the valuation as “insanely dumb.”
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