Is Elon Musk’s X winning back advertisers?

X is reportedly in talks with investors to raise money at a $44bn valuation, which is the same price that Elon Musk paid in 2022 to acquire the social media platform (then Twitter), despite user and advertiser losses. 

This marks the first known investment round since Musk took X private, but talks are still in progress and could change or be abandoned in the future.

Fidelity Investments had previously marked down its Twitter stake by 70% from the purchase price. However, Musk’s alignment with US President Donald Trump has shifted investors’ perceptions of X’s prospects. 

Since Trump’s election, Tesla shares have been up 40%. X’s 2024 earnings and revenue also appeared to have stabilised, which was partly due to an election-related ad boost and Morgan Stanley successfully selling $3bn of X’s debt without a discount, signalling increased investor confidence.

In addition to increased confidence from investors, X is also winning back advertisers on its platform. Last week, Apple announced that it has restarted ad campaigns on the social media platform after pulling ads in late 2023 over brand safety concerns. 

While many advertisers pulled away from X’s platform, 50% of the top advertisers on X as of January 2025 were new, including brands like Temu, NFL, DraftKings, Amazon, and Dell. 

However, X is still experiencing a decline in revenue despite its growth as its US ad revenue dropped by 28% in 2024, according to MediaRadar, despite a 15% year on year growth in advertiser count.