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Once Twitter, now X, is losing its value. Since Elon Musk acquired Twitter and rebranded it as X, its valuation has plummeted by 71%, according to investment firm Fidelity. Billionaire Elon Musk bought Twitter for $44 billion in 2022, and the venture, once valued at $44 billion, now stands at an estimated $12.5 billion.
The valuation of Twitter/X has dropped by 71%.
The financial firm that assisted Musk’s acquisition disclosed that X’s value declined by over 10.7% in just November, following Musk’s controversial remarks that dissuaded key advertisers. Fidelity had previously devalued its X holdings during Musk’s leadership.
Axios was the first to report on this matter, noting that the 10.7% drop in November was a result of Musk’s “Go f**k yourself” comment during an interview with the New York Times. Furthermore, more than 200 companies withdrew their ads from the platform, leading to a decline in X’s ad revenue.
Notably, Fidelity did not disclose the size of its current X stake, valued at $5.6 billion. The rationale behind Fidelity’s revised valuation remains unclear, leaving it uncertain if they have access to undisclosed information from the company.
It appears that X is making efforts to regain momentum. Recently, the platform reintroduced headlines to link previews, reversing one of its most unpopular changes. Only time will tell whether this move helps improve the company’s finances. But it sure will have a say because X is largely a platform for sharing information. And headlines play a major role, here.
Despite X’s deteriorating condition, Elon Musk remains the world’s richest person
Despite encountering economic challenges and personal controversies, Elon Musk continues to reign as the world’s financial leader. He has reclaimed his position as the wealthiest individual globally. His net worth is valued at $229 billion, according to a Bloomberg report. In 2023, Musk’s wealth surged by an astounding $92 billion, marking a 67.2% increase. This substantial growth primarily stemmed from the appreciation of Tesla, his electric car company. Its shares rose by an impressive 129.8%. In addition to Tesla, Musk also owns SpaceX and, notably, X.