Crypto News: Following the Tesla shareholder meeting earlier in May 2023, billionaire Elon Musk said he would not mind losing money if that is what it takes to speak his mind. “I will say what I want to say even if it means losing money,” he said at the time speaking in an interview. In the current context of Twitter rebranding to X, advertising and brand experts believe the rebranding exercise has nothing to add to the company but for Musk’s ego. Market analysts believe the exercise could likely be counter productive for the social media company that has already been on a value decline since Musk’s takeover in the last quarter of 2022.
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Meanwhile, the Dogecoin price has been on a rise since Elon Musk announced the rebranding plans. Also, Musk’s updated Twitter location to XÐ fueled speculation that the D refers to Dogecoin.
Huge Loss In Twitter Brand Value
According to a Bloomberg report, brand experts believe the renaming exercise could be a mistake that could eventually affect Tesla stock as well. Todd Irwin, founder of brand agency Fazer, said the actions ‘tweeting’ and ‘retweeting’ have become part of social media culture and that new vocabulary is hard to replicate such a cultural effect. On the flip side, it is believed that the rebranding move could likely not have much impact on the company’s bottom line any time soon, as per Gary Black, managing partner at The Future Fund. He said it eventually boils down to whether or not the company will improve on free cash flow by the next year.
While I’m no fan of Twitter’s name and logo change to X, it really shouldn’t impact $TSLA fundamentals or stock price unless Twitter FCF doesn’t turn positive by 2024. With the 2024 Olympics and Presidential Election, the wind will be at X’s back. @elonmusk
— Gary Black (@garyblack00) July 24, 2023
Despite the sea change in the Twitter experience — paid verification, long form content and limits to daily activity — Musk faces another challenge in recovering the platform’s advertising revenue. The platform’s ad revenue had dropped by over 50% since October 2022.
The Everything App
Linda Yaccarino, the Twitter CEO, said the platform is set for transformation into a global marketplace for ideas, goods, services, and opportunities. Musk envisions the X platform to be the one stop place for conducting financial communications. “In the months to come, we will add comprehensive communications and the ability to conduct your entire financial world,” he said while making the rebranding announcement.
There is risk involved when it comes to making financial decisions on social media platforms, due to the trust factor. This could potentially tarnish Musk’s image and brand value as well, analysts say.
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Source: https://coingape.com/elon-musk-x-twitter-rebranding-dogecoin-news/