X CEO Linda Yaccarino has announced that users will soon be able to trade and invest directly on the platform, signaling a major step in Elon Musk’s plan to turn the former Twitter into an “everything app.”
Key Takeaways:
X will soon offer trading and investment features as part of its broader push into financial services. The platform’s new digital wallet, X Money, is launching with Visa. Regulatory hurdles and lingering advertiser skepticism pose ongoing challenges to the company’s financial recovery.Speaking at the Cannes Lions advertising festival, Yaccarino outlined a financial services push that includes digital payments, commerce tools, and possibly a branded credit or debit card.
“You’ll be able to come to X and be able to transact your whole financial life on the platform,” she told the Financial Times.
“Whether I can pay you for the pizza that we shared last night or make an investment or a trade—that’s the future.”
X to Allow Trade and Invest with Visa Partnership
At the center of this expansion is X Money, a digital wallet and peer-to-peer payment service launching later this year in partnership with Visa.
Initially rolling out in the U.S., the service is expected to support tipping creators, buying merchandise, and storing value.
However, the shift into finance may bring regulatory scrutiny. X will likely face challenges related to licensing, anti-money laundering compliance, and operational oversight in financial markets.
The company is also navigating a complicated advertising environment. After Musk’s $44 billion acquisition in 2022, many advertisers pulled back due to concerns over moderation and content safety.
While Yaccarino claimed that 96% of former advertising clients have returned, industry skepticism remains.
Yaccarino dismissed Wall Street Journal reports that X threatened brands into advertising as “hearsay,” citing unnamed sources.
According to the report, several major brands, including Verizon and Ralph Lauren, allegedly agreed to ad deals after facing pressure. “It’s unnamed sources, random third-party commenters,” she said.
X is currently involved in a federal antitrust lawsuit against the Global Alliance for Responsible Media and other ad industry players.
The company accuses the group of coordinating a boycott under the pretense of promoting online safety.
Some brands have since been removed from the suit, including Unilever, which resumed advertising in October.
Research from eMarketer projects X’s revenue will rise to $2.3 billion this year, though still far below the $4.1 billion recorded in 2022.
Elon Musk Sells X to xAI
In March, Elon Musk sold his social media platform X to his AI company, xAI, in an all-stock deal valuing xAI at $80 billion and X at $33 billion, including $12 billion in debt.
The timing of the announcement came as a U.S. judge rejected Musk’s motion to dismiss a class-action lawsuit accusing him of misleading shareholders during his original acquisition of Twitter.
The acquisition has sparked criticism, with observers like Adam Cochran of Cinneamhain Ventures warning that the move heightens legal exposure for xAI and raises questions about the structure of the deal.
Cochran claimed Musk overvalued xAI to absorb X while shifting liabilities and potentially user data under the AI firm, calling the valuation “insanely dumb.”
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