X Ad Revenue Surges for First Time Since Elon Musk Purchase

X is projected to see its ad sales jump significantly in 2025, according to a new report out Wednesday, in the latest sign that Elon Musk’s social media platform is in the midst of a business turnaround.

The app formerly known as Twitter is expected to generate $1.31 billion in U.S. ad revenue this year, up 17.5% compared to 2024, according to data from eMarketer that was shared with Bloomberg. And globally, X’s ad sales are estimated to hit $2.26 billion in 2025 — up 16.5% year-over-year. This would mark the first time ad sales have increased since Musk bought the app in late 2022, after back-t0-back down years.

Jasmine Enberg, eMarketer’s principal analyst, said X has “managed to secure a new base of advertisers, including small- and medium-sized businesses, which Twitter historically struggled with.”

Still, X is trailing the ad revenue it brought in pre-Musk, when the app reported $2.36 billion in U.S. ad sales in 2022. But it is worth mentioning Musk cut 80% of Twitter’s staff when he took over — meaning the platform could be profitable with lower ad sales because it is spending less. X is a private company and does not report its finances quarterly since Musk bought the company.

The company posted $1.2 billion in earnings before interest, tax, depreciation and amortization last year, Financial Times reported earlier this month. For comparison, Twitter reported a loss of $221 million in 2021, its last full year as a public company; the app posted two profitable years in 2018 and 2019, bringing in $1.2 billion in ’18 and $1.45 billion in ’19.

Enberg also said some of X’s ad growth is “being driven by fear,” as companies view spending on X “as a cost of doing business in order to mitigate potential legal or financial” repercussions.

“But fear is not a sustainable motivator and the situation remains volatile, partly as some consumers’ discontent toward Musk grows,” she added.

The projected growth for X’s ad sales comes after a number of major advertisers have returned to the platform in recent months, including Apple and Disney. X’s valuation has also surged recently, with the company now valued at $44 billion — the same price Musk paid for it. That $44 billion valuation is noteworthy, as it comes just a few months after Fidelity had valued the company at $12.32 billion. X’s advertising gains were likely a key driver in its valuation rebounding.

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