X’s Value Drops 79% Since Musk’s Takeover

The value of X, formerly known as Twitter, has dropped dramatically since Elon Musk bought the platform.

The major investment firm Fidelity Blue Chip Growth Fund estimated that the shares in the private social media company would be valued at $4.2 million. In comparison, in October 2022 when Musk took over the platform, the fund valued the shares at $19.66 million. This means a 79% decrease since the fund’s estimate of the company’s shares since Musk bought the social media platform.

Applying the shares valuation to the overall company valuation, X could be worth $9.4 billion, that’s far less than the $44 billion Musk paid for Twitter.

The decrease in value comes as X keeps struggling to keep advertisers on the platform. Many advertisers chose to flee X/Twitter when their ads appeared alongside neo-nazi posts. Musk has failed to moderate content in the platform, making him liable for many fines in Brazil and Australia.

X was recently ordered to pay a fine of $418,000 in Australia for failing to cooperate with a regulator’s request for information about anti-child abuse practices.

Despite Fidelity’s valuation, other companies may have their shares in X differently. However, it is true that Musk has been struggling to make a profit with X, launching different paid subscriptions and restricting access to the API.