Dividends and More advertisers halt spending on X over Musk endorsement of antisemitic conspiracy post

In America there is the constitutional right to free speech, which implies you can say or write anything you want except going over the line to violence. This is wonderful for individuals and sometimes there is an accountability to the individual. Many people have posted comments on social media and in later years, someone examined their posts and they may or may not be promoted or the company they are representing not win the contract because of their posts. The important element to society is the person has the right to post the information.

In an article by Kate Conger and Tiffany Hsu of the New York Times News Service reported there is a difference with companies and posting information. If a company needs advertising as revenues, it has to respect the aims of the advertisers. If the image the advertiser is seen to be damaged, advertising will be changed to other companies. The issue is the ongoing conflict in the Middle East – Israel and Palestine. With every conflict there is both good and bad on both sides, but sometimes long-standing prejudices and conspiracies will enter the space.

In the case of X formerly Twitter, major advertisers have paused their spending as the backlash of Elon Musk’s endorsement of an antisemitic conspiracy theory on the platform. Companies such as Warner Bros, Sony, IBM, Lionsgate, Paramount Global which owns CBS stopped advertising.

Social media companies such as X are essentially advertising companies, however major brands do not want their ads next to posts with offensive or hateful speech. An organization called Media Matters said X had put ads besides tweets that promoted the Nazi Party. Elon Musk said a review of X’s data says there were only a handful of ads placed beside the posts of the Nazi Party. Mr. Musk said the company will sue Media Matters.

Linking to dividend paying stocks, as an individual you can have whatever view you wish to have as long as you do not cross the line to violence. With a company, it has to pay attention to the wishes of its customers, because unlike governments, companies can limit who the customers are. Part of the organization is a determination who the customers are and who the customers are not. Usually, companies are lagging behind the changes in the demographics of the country, but the President has a choice one way or another and generally try to stay in the middle where the company supports both sides. It is one of the reasons companies support the United Way and minimum wage requirements, they want it both ways. Whatever company you invest in, there will always be a pro and con with the company but with the dividends you can decide where you want to spend the money.

There are more questions than answers, till the next time – to raising questions.

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