X alleges the companies conspired to boycott the platform, resulting in a loss of revenue.
Transcript:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Wall Street snapped a three-day losing streak as investors reassess the reasons behind the meltdown. In a note to clients, Goldman Sachs pointed to low risk of a U.S. recession and described the recent selling spree as a buying opportunity.
With that said, all eyes are now on earnings season. Yum Brands, parent of KFC, Taco Bell, and Pizza Hut, beat profit forecasts. However, like many of its peers, it is struggling to find the right price-point for inflation-weary consumers.
Up next on the earnings calendar: Walt Disney, Warner Bros. Discovery, Lyft, and Shopify.
In other headlines: X, owned by Elon Musk, is suing a group of advertisers, accusing it of antitrust conspiracy.
The lawsuit accuses the World Federation of Advertisers, including Unilever, Mars, and CVS, of illegally banding together to withhold ad dollars from the site formerly known as Twitter. X CEO Linda Yaccarino said in a statement, “people are hurt when the marketplace of ideas is constricted. No small group of people should monopolize what gets monetized.”
The lawsuit claims X lost billions in ad sales after a 2019 campaign known as the Global Alliance for Responsible Media urged advertisers to use their buying power to impact the spread of “illegal or harmful content on digital media platforms.”
Advertisers have been at odds with X ever since Musk, a lightning-rod for controversy, took over in 2022. Musk has relaxed content moderation, putting advertisers at risk of seeing their products next to problematic posts. According to Bloomberg, sales at X have plunged 50 percent under Musk’s leadership.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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