X to report first annual ad revenue growth since Elon Musk's takeover, data shows

Elon Musk-owned X is poised for the company’s first year of advertising revenue growth since its acquisition, data from Emarketer showed.

Elon Musk-owned social media platform X is poised for the company's first year of advertising revenue growth since its acquisition by the billionaire in 2022, data from research firm Emarketer showed on Wednesday.

Brands are returning to X at a time when Musk's influence has grown in the Trump administration, with the Tesla CEO's key role in the U.S. Department of Government Efficiency.

In 2025, X's U.S. ad revenue is expected to grow 17.5% to $1.31 billion, while global ad sales are estimated to rise 16.5% to $2.26 billion, according to Emarketer.

"Some of this year's growth is also being driven by fear. Many advertisers may view spending on X as a cost of doing business in order to mitigate potential legal or financial repercussions," said Jasmine Enberg, principal analyst at Emarketer.

Enberg said X has managed to attract small- and medium-sized businesses, which the company has historically struggled with.

Social platforms including Meta Platforms-owned Instagram and short-video app TikTok jostle for a larger share of the ad market that could be impacted by U.S. tariffs and economic uncertainty.

MoffettNathanson on Monday trimmed its U.S. advertising growth forecast to more than 5.8% from over 6.9%, citing a flurry of changes brought by the new administration.