X Value Today Shows Dismal Decline Under Elon Musk's Ownership

The Deteriorating Valuation of X

The value of X, formerly known as Twitter, has dramatically declined, with X worth less than 1/4th of what Elon Musk paid for it—approximately $9.4 billion today. This drop highlights a significant financial blow to investors in X, as Fidelity’s Blue Chip Growth Fund reported a staggering 78.7% cut to the valuation. Musk's acquisition, initially pegged at $44 billion, is now facing mounting financial challenges.

Advertising Revenue Decline

X's advertising revenue, which accounts for 70% to 75% of its income, was only $2.5 billion in 2023, down from the previous year's earnings. As this revenue continues to dwindle, the platform's financial stability remains in jeopardy, forcing tough operational decisions.

• Shutting down the San Francisco headquarters
• Relocating operations to Texas
• Moving remaining employees to smaller premises

Turbulent Future for X

Despite dipping morale, Musk attempts to uplift the remaining workforce with stock grants, raising skepticism due to a history of unfulfilled promises. Adding to the turmoil, high-profile investors like Bill Ackman and Sean “Diddy” Combs are entangled in their own controversies, which affect public perception and ownership stability.

The future of X remains uncertain, plagued by diminishing revenues and ongoing struggles to attract advertisers. As analysts assess the dire situation, questions linger about the platform's ability to recover under Musk's leadership.