Tech giant IBM (NYSE:IBM) has suspended its advertising on Elon Musk‘s social media platform, X, after a report that its ads were placed next to antisemitic content. According to a report by media watchdog group Media Matters for America, ads for popular tech and media companies like Apple (AAPL), Oracle (ORCL), Comcast (CMCSA), and IBM were “next to posts that tout Hitler and his Nazi Party on X.”
However, a spokesperson for X stated that the accounts that the report was referring to and which were posting such hateful content would no longer be able to monetize the content and it would be labeled as unsafe for work, thus limiting its reach. The spokesperson for X added that its advertising system is “not intentionally placing a brand actively next to this type of content, nor is a brand actively trying to support this content with placement.”
The decision by IBM to pause ads on X comes after Musk’s recent controversial statements and promotion of an antisemitic post.
An IBM spokesperson told CNBC, “IBM has zero tolerance for hate speech and discrimination and we have immediately suspended all advertising on X while we investigate this entirely unacceptable situation.”
Is IBM Stock a Sell or Buy?
Analysts remain cautiously optimistic about IBM stock with a Moderate Buy consensus rating based on three Buys and six Holds. Even as IBM stock has rallied by more than 13% year-to-date, the average IBM price target of $149.75 implies a downside potential of 2.2% at current levels.
