Linda Yaccarino steps down as CEO of Elon Musk's X
Her departure adds to the turbulence in Musk's sprawling business empire, including falling sales at his electric vehicle company, Tesla, and AI-related controversies. Musk is also embroiled in a war of words with his former ally, U.S. President Donald Trump.
Yaccarino announced that she was leaving in a post on X, stating that she was grateful to Musk "for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App."
In a reply to the CEO's post, Musk thanked Yaccarino for her contributions.
In her post, she did not give a specific reason for her decision to leave. Neither she nor representatives at X responded to requests for comment.
Grok chatbot under fire over antisemitic responses
Her resignation comes just one day after Grok, X's AI chatbot developed by xAI, posted antisemitic content praising Adolf Hitler on the platform. On Tuesday, Grok suggested Hitler would be able to combat alleged "anti-white hatred," saying he would "spot the pattern and handle it decisively."
The posts were later deleted following backlash from the public and the Anti-Defamation League (ADL).
Some people on X noted Yaccarino's resignation came just a day after the chatbot's use of antisemitic language.
"Does this have anything to do with Grok's meltdown yesterday?" one user asked.
Yaccarino, previously chair of global advertising and partnerships at Comcast's NBCUniversal, may have left as "a result of a lack of fit between her approach and Elon Musk's style," said Gil Luria, analyst at D.A. Davidson.
"This may have come to a head when the embedded AI chat Grok started responding to AI posts in an increasingly offensive manner yesterday."
In March, Musk's AI startup xAI acquired the social media platform in a $33 billion all-stock deal.
Tesla also faces exec exodus
Tesla is also dealing with an exodus of top executives. Musk's confidant at Tesla, Omead Afshar, and North America HR director Jenna Ferrua left the company last month, sources told Reuters.
Tesla shares slipped about one per cent on news about Yaccarino's departure, but then clawed back some lost ground.
Yaccarino took the top job in 2023 to help Musk transform Twitter, as it was then known, after he bought it in a $44 billion deal.
The social media platform is dealing with a heavy debt load, and Yaccarino has often had to deal with controversies stirred up by Musk, including his endorsement of antisemitic conspiracy theories in late 2023.
The company later sued numerous advertisers and an advertising group, alleging they colluded to deny X ad dollars.
Under Yaccarino, X introduced a range of new features aimed at turning the social media site into the "everything app" that Musk desired, including partnering with Visa to offer direct payment solutions and launching a smart TV app.
The company was also exploring rolling out an X credit or debit card, the Financial Times reported last month.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
29 minutes ago
- Globe and Mail
Forget About Inflation! This Is a Much Bigger Threat to Wall Street.
Key Points Volatility has been readily apparent for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite since 2025 began. Inflationary fears have been heightened by President Donald Trump's tariff and trade policy, as well as the rapid expansion of M2 money supply. However, there's no bigger threat to the stock market's rally than the earnings quality of Wall Street's most-influential businesses. These 10 stocks could mint the next wave of millionaires › Over the last century, the stock market has been a surefire moneymaker for patient, long-term-minded investors. Although other asset classes have increased in value over extended periods, including real estate, Treasury bonds, and commodities like gold, silver, and oil, none have come close to matching the annualized return of stocks. But just because the stock market offers a lengthy track record of making long-term investors richer doesn't mean Wall Street is free of volatility. Since the curtain opened for 2025, the benchmark S&P 500 (SNPINDEX: ^GSPC) and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) have both hit new highs. Additionally, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 fell into correction territory, with the Nasdaq Composite enduring a short-lived bear market. Volatility tends to be driven by investor uncertainty and emotions. Though there's clear uncertainty at the moment concerning the prevailing rate of inflation and how rising prices might adversely impact stocks moving forward, a strong argument can be made that there's a much bigger threat to Wall Street than inflation. Inflationary fears are mounting on Wall Street Let me preface this discussion by noting that a modest level of inflation is normal, healthy, and expected. When the U.S. economy is firing on all cylinders and expanding, it's expected that businesses will possess some level of pricing power that allows them to charge more for their goods and services. Historically, the Federal Reserve has targeted a prevailing rate of inflation of 2%. What has professional and everyday investors concerned is the potential for two variables to significantly increase the domestic inflation rate, which can have adverse consequences on corporate America, the U.S. economy, and the stock market. The first of these issues is President Donald Trump's tariff and trade policy. Following the close of trading on April 2, Trump unveiled his grandiose plan, which included a 10% sweeping global tariff, as well as higher " reciprocal tariff rates" on dozens of countries that have historically run unfavorable trade imbalances with America. For what it's worth, Trump has paused reciprocal tariffs on most countries until Aug. 1. The implementation of global tariffs comes with a host of potential problems, ranging from worsening trade relations with our allies to the possibility of foreign countries and/or consumers not buying American-made goods. But arguably the biggest worry of all with tariffs is their inflationary impact. Whereas output tariffs are applied to finished products imported into the country, input tariffs are duties assigned to goods used to complete the manufacture of products in America. Input tariffs run the risk of making U.S. goods costlier, and Trump's tariff and trade policy doesn't do a very good job of differentiating between output and input tariffs. An expected increase in the prevailing rate of inflation from Donald Trump's tariff and trade policy has even resulted in something of a " Trump bump" in Social Security's 2026 cost-of-living adjustment (COLA) forecast. M2 money supply is expanding at its fastest pace in three years. US M2 Money Supply data by YCharts. The second variable that can cause the inflation rate to accelerate and remain well above the Fed's 2% target is the expansion of U.S. money supply. Similar to the prevailing rate of inflation, money supply is something we want to see growing at a modest rate. Expanding economies require added capital to facilitate transactions. Steady growth in money supply is one of the key markers of a healthy economy. What's specifically worth noting about U.S. money supply is the expansion we're witnessing in M2. This measure of money supply includes cash and coins in circulation, demand deposits in a checking account, money market accounts, savings accounts, and certificates of deposit (CDs) under $100,000. It's money that can be spent, but requires a little effort to get to. Over the trailing year, through May 2025, M2 money supply has increased by precisely 4%. It's the fastest year-over-year expansion in M2 since 2022 -- likely a result of the Fed kicking off a rate-easing cycle and making borrowing rates more attractive -- and it suggests a strong possibility of the U.S. inflation rate remaining stubbornly above 2%. But there's a much bigger downside threat to the stock market than inflation. Earnings from Wall Street's most-influential businesses aren't all they're cracked up to be The surface-scratching red flag for Wall Street is its valuation. When 2025 began, the S&P 500's Shiller price-to-earnings (P/E) Ratio, which is also known as the cyclically adjusted P/E Ratio (CAPE Ratio), was at its third-highest multiple when back-tested 154 years. Based on what history tells us, the previous five times when the S&P 500's Shiller P/E Ratio surpassed 30 and held this multiple for at least two months were eventually followed by declines ranging from 20% to 89% in the Dow Jones Industrial Average, S&P 500, and/or Nasdaq Composite. In short, the stock market has a track record of struggling when valuation premiums become extended to the upside. When stocks, collectively, trade at aggressive valuation premiums, it's often reflective of investor excitement over a next-big-thing innovation (e.g., artificial intelligence), as well as the result of strong earnings growth. But herein lies the real threat to Wall Street: Earnings growth has been a bit of a smoke-and-mirrors show for some of the stock market's leading businesses. Don't get me wrong -- some of Wall Street's most-influential businesses have blown the doors off of growth expectations with consistency for years. This includes Nvidia and Microsoft. But some of the stock market's top companies aren't nearly as operationally sound as they might appear -- and that's a problem. Electric vehicle (EV) maker Tesla (NASDAQ: TSLA) serves as a perfect example. On the surface, it's been profitable for five consecutive years and has relied on its first-mover advantages in the EV space, as well as its expansion into energy generation and storage, as a means to grow its sales and profits. But you might be surprised to learn that more than half of Tesla's pre-tax income has consistently derived from unsustainable sources, not from selling EVs or energy generation and storage equipment. In the March-ended quarter, Tesla reported $589 million in pre-tax income, of which $595 million came from selling regulatory automotive credits (which are given to it for free by federal governments) and $309 million in net interest income earned on its cash (less interest expenses). Without regulatory credits and interest earned on its cash, Tesla would have produced a $315 million pre-tax loss for the first quarter. Worse yet, President Trump's One Big Beautiful Bill, which was signed into law on Independence Day (July 4), is getting rid of automotive regulatory credits for EVs. Tesla is about to lose a 100% gross margin line item, which further exposes how poor its earnings quality truly is. Something similar can be said about Apple (NASDAQ: AAPL), but for different reasons. Apple's earnings quality comes under significant scrutiny if you back out the impact of its market-leading share buyback program. Since 2013, Apple has repurchased an almost unfathomable $775 billion worth of its common stock and retired in excess of 43% of its outstanding shares. Dividing net income by a shrinking number of outstanding shares has pushed earnings per share (EPS) higher and made the stock more fundamentally attractive to value seekers. But here's the issue: Apple's growth engine has stalled for years, and it's being completely masked by the company's outsized buyback program. In fiscal 2021 (ended Sept. 25, 2021), Apple delivered $94.7 billion in net income. For fiscal 2024 (ended Sept. 28, 2024), net income tallied $93.7 billion. Despite a $1 billion decline in net income over three years, Apple's EPS rose from $5.67 to $6.11, and its stock has rallied 44% since fiscal 2021 ended. In other words, the business has worsened from an income standpoint, but the company has added close to $750 billion in market value, which makes no sense. Therefore, although inflation is a headline story, it's the earnings quality of Wall Street's most-influential businesses that's the unequivocal threat to the stock market. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $425,583!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,324!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $674,432!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 7, 2025
Globe and Mail
2 hours ago
- Globe and Mail
2 High-Yield Dividend Growth Stocks to Buy Now and Hold for Decades
Key Points The average dividend payer in the S&P 500 index offers an unattractive yield these days. UnitedHealth Group raises its dividend rapidly, but unexpectedly high medical expenses are pressuring profits this year. Prologis is the world's largest owner of logistics real estate and an outstanding dividend grower. These 10 stocks could mint the next wave of millionaires › If you're an income-seeking investor, a buoyant stock market near its all-time high is actually a problem. At recent prices, the average stock in the benchmark S&P 500 index offers an itty-bitty 1.2% dividend yield. A low average dividend yield suggests the market is overbought, but that doesn't mean there aren't any hidden gems out there. UnitedHealth Group (NYSE: UNH) and Prologis (NYSE: PLD) have been flying under the radar even though they both offer yields that are more than double the benchmark average. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » UnitedHealth Group and Prologis aren't the highest-yielding stocks in the benchmark index, but they are some of its fastest dividend growers. Here's how they could produce heaps of passive income for folks who buy now and hold indefinitely. 1. UnitedHealth Group Shares of healthcare benefits management conglomerate UnitedHealth Group are down by about 44% in 2025. The company dramatically suspended its earnings outlook but it hasn't cut its dividend payout. Shares of UnitedHealth Group offer a 2.9% dividend yield at recent prices. The COVID-19 pandemic made the past five years challenging ones to operate an insurance business, but this didn't stop the company from lifting its dividend payout 77% higher. In May, UnitedHealth Group's CEO left, and the management that remained suspended forward-looking earnings guidance. In a nutshell, the company didn't raise premiums high enough to compensate for soaring healthcare expenses. Predicting earnings over the next 12 to 24 months could be a challenge and dividend payouts might not rise very fast in the near term. Investors with more than a few years ahead of retirement, though, can reasonably expect a return to rapid earnings growth several years from now. The Centers for Medicare and Medicaid Services measured the national health expenditure at $4.9 trillion in 2023, a 7.5% gain over the previous year. The national health expenditure is expected to keep growing at 5.8% annually and consume 20.3% of America's gross domestic product in 2033. A couple of years ago, UnitedHealth employed or was affiliated with about 10% of the nation's physicians. As the nation's largest employer of medical professionals, it can do more to control costs than any of its peers. This should allow it to retain a leading share of the market for employer-sponsored health insurance. A stock market that keeps beating down UnitedHealth stock is forgetting that the government and employers that sponsor health plans bear the burden of increasing healthcare expenses, not the middlemen. In the years ahead, UnitedHealth will most likely raise premiums and deliver a steadily growing profit again. 2. Prologis Lingering aftereffects of the pandemic are also keeping shares of Prologis depressed. This is a real estate investment trust (REIT) that owns about 1.3 billion square feet of warehouses and related buildings that facilitate e-commerce operations. Prologis stock is down by about 38% from a peak it set in 2022. Despite arguably overbuilding during the pandemic, the REIT was able to raise its dividend payout by 74% over the past five years. At recent prices, it offers a 3.8% yield. Overbuilding during the pandemic led to a glut of logistics-focused real estate, but it isn't anything Prologis can't handle. An occupancy rate that finished March at 95.5% shows us that the industry leader can still attract all the tenants it needs. Prologis is an international business, but it still relies on the well-established U.S. market for 86% of its net operating income. Signing net leases that transfer all the variable costs of building ownership to the tenant is popular in America but still a novel concept in many parts of the world that are still building out their commercial logistics infrastructure. International expansion gives Prologis a lot of room to grow and it has an important advantage that will help it lead the way abroad. An "A" credit rating from S&P Global and an "A2" rating from Moody's allowed this REIT to boast an extremely low 3.2% weighted average interest rate on outstanding debt at the end of March. Access to cheap capital allows Prologis to offer relatively low lease rates that attract top tenants. Without an end to this virtuous cycle in sight, there's a good chance that it keeps raising its dividend payout at a satisfying pace throughout your retirement years. Adding some shares to a diversified portfolio now looks like the right move. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 179% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 7, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's, Prologis, and S&P Global. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
3 High-Yielding Dividend Stocks You Can Buy for Less Than $100
Key Points These stocks all yield more than three times the S&P 500 average. Together, they can help diversify your portfolio while adding plenty of income and stability over the long haul. 10 stocks we like better than Realty Income › Want some modestly priced stocks that also pay high dividends? It can be challenging finding a quality stock that fits that criteria, but there are three that can be excellent options worth considering today: Realty Income (NYSE: O), AT&T (NYSE: T), and Toronto-Dominion Bank (NYSE: TD). These stocks are all trading at less than $100 per share, offer high yields that are more than three times the S&P 500 (SNPINDEX: ^GSPC) average of 1.2%, and can be relatively safe investments to simply buy and hold for the long haul. Here's a look at how much these stocks pay, and why they are good investments to put into your portfolio right now. 1. Realty Income On Monday, real estate investment trust (REIT) Realty Income closed at a price of $57.53. This year, the stock has risen by nearly 8%, giving investors some decent gains to go along with a fairly high yield of 5.6%. Not only is Realty Income's high dividend appealing, but the REIT makes payments on a monthly basis. Unlike most other dividend stocks, you can collect a much more frequent payout with this investment. The REIT also prides itself on stability and consistency; it has declared a dividend for 660 straight months. In June, it also announced that it would be increasing the rate of its monthly dividend for the 131st time in its history. This year looks to be another solid year for the business, as Realty Income expects occupancy levels of more than 98% and same-store rent growth of around 1%. Its funds from operations for the first three months of the year came in at $1.05, up from $0.94 in the same period last year. The company is diversified across 91 industries and is in multiple markets, making it a fairly safe investment to put in your portfolio. For buy-and-hold investors, this can be a no-brainer income stock to hang on to. 2. AT&T Telecom giant AT&T trades at around $30 per share and is a modestly priced stock you can pick up right now. Despite soaring more than 50% over the past 12 months, the dividend stock only trades at 17 times its trailing earnings, which is modest in comparison to the average stock on the S&P 500, which trades at a multiple of 24. AT&T's dividend yields 3.8%, and while the company hasn't raised its payout for multiple years, it may only be a matter of time before that happens. Its financials have been looking good, with the company expecting free cash flow of at least $16 billion this year -- far more than the $8.3 billion it pays out in dividends on an annual basis. AT&T also makes for an underrated growth stock, as the company is in the process of acquiring Lumen 's Mass Markets fiber business, which will nearly double the amount of fiber locations it is in by the end of 2030, to around 60 million. If you want a combination of a high yield and some good growth potential, AT&T is a stock worth considering today. 3. Toronto-Dominion Bank Toronto-Dominion Bank is a top Canadian-based bank that can make for a reliable long-term investment. It yields 4.1%, which is a fairly strong payout for a top bank stock. Over a period of five years, TD has increased its quarterly dividend by 42%, for an average compounded annual growth rate of 7.2%. The bank has operations in the U.S., but due to lax anti-money laundering procedures, it was hit with a $3 billion fine last year and has an asset cap in place in the U.S. as a result of its settlement with regulators. But as a long-term play, this can still make for an excellent investment. TD is among the largest banks in North America, and over the trailing 12 months, it has posted a profit of 16.8 billion Canadian dollars on revenue totaling CA$58.8 billion, for a terrific profit margin of around 29%. Trading at around $74 and just 1.5 times its book value, TD can be a good value pickup for income investors today. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $980,723!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to179%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
