Elon Musk’s X Has Plummeted Nearly 80% in Value Since Acquisition
Significant Value Decline of X
Elon Musk's X, previously known as Twitter, has witnessed a staggering decrease in valuation since Musk’s acquisition two years ago. The investment firm Fidelity estimates that the platform is now worth approximately $9.4 billion, a dramatic decline of 79% from the original purchase price of $44 billion.
Fidelity Estimates and Market Reflections
- As of late August, Fidelity valued X’s shares at just $4.2 million.
- This marks a 24% drop in value compared to previous estimates.
- Analysts suggest this price drop reflects reducing ad revenue, essential for the platform's economic viability.
Challenges Faced Under Musk's Ownership
While X claims a user base of 570 million monthly active users, challenges remain. Recent data indicates an 11% decline in user activity on U.S. platforms.
- Ad pressure remains a major concern, with a survey indicating that 26% of marketers plan to reduce spending.
- Advertisers express worries about content safety, further impacting revenue.
Future Potential and AI Integration
Despite current challenges, some experts believe the data gathered from X could solidify its future value, particularly in relation to AI development, marking it as a potential goldmine for Musk’s ventures.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.