In a significant development, Walmart, the largest retailer in the United States, has opted to cease advertising on the X platform, which is owned by Tesla CEO Elon Musk. This strategic move positions Walmart as the inaugural major corporation to distance itself from the platform in the wake of Musk’s recent controversial comments. A report by Bloomberg outlines Walmart’s decision as a departure from X following Musk’s string of disparaging remarks.
Walmart’s choice to discontinue advertising on X is attributed to a preference for alternative platforms that align more closely with its customer base. The retail giant now joins the ranks of Disney, IBM, Sony, and other companies that have opted to discontinue their engagement with the X platform.
A spokesperson for Walmart issued a statement, asserting, “We aren’t advertising on X as we’ve found other platforms to better reach our customers.” The spokesperson refrained from specifying when this change will take effect or the motivating factors behind the decision.
Joe Benarroch, Head of Business Operations at X, acknowledged Walmart’s departure, noting the retailer’s “wonderful community” of over 1 million followers on X, with the majority of users engaging in online shopping. Despite not explicitly linking its decision to Musk’s comments, Walmart’s withdrawal aligns with a broader trend of companies distancing themselves from X following Musk’s public endorsement of an antisemitic tweet.
Walmart’s exit from X coincides with Musk’s controversial interview at the DealBook Summit, where he apologized for his endorsement of the antisemitic tweet. However, Musk’s apology came after accusing departing advertisers of attempting to “blackmail” him with monetary leverage. Notable entities such as Disney, Sony, and IBM had previously abandoned the platform, prompting speculation about the impact on business within Musk’s X.
This development contributes to the ongoing challenges faced by X, which has witnessed a series of advertisers departing since Musk’s acquisition of the platform (formerly known as Twitter) last year for a substantial $44 billion. Advertising serves as X’s primary revenue stream, and the fallout from Musk’s controversial statements has resulted in a significant 60% decrease in U.S. ad revenue, as acknowledged by Musk in September.
During the DealBook Summit, Musk expressed concerns that an advertiser boycott could potentially “kill the company,” attributing blame globally to advertisers if such a scenario were to unfold. Concurrently, Walmart’s stock has experienced a marginal decline of over 1% in the market. Despite this, the retailer’s overall share price maintains a positive trajectory, boasting a 7% increase for the year.
