Elon Musk Twitter Takeover: The Decline of X's Value
Elon Musk's Twitter Takeover: Value Decline
Since Elon Musk took control of Twitter, now known as X, the company has experienced significant financial challenges. According to Fidelity, the value of its holdings in X has fallen by 80% from pre-takeover levels.
Twitter's Long Decline
Musk's ambitious vision faced scrutiny from the outset. Analysts argue that the $44 billion purchase price was excessively high. Despite X's claims of 550 million monthly active users, recent reports reveal a drop in European users from 111.4 million to 105.9 million.
- EU filings show a downward trend in users.
- Q2 2024 demonstrated a sharp revenue drop of 25% QoQ and 53% YoY.
Challenges with Brand Image and Advertising
Advertising revenue has become a pressing issue. Musk's controversial public persona has alienated advertisers, further exacerbated by significant staff cuts that hinder effective content moderation.
- 80% of staff laid off since acquisition.
- Increased extremist content has deterred advertisers.
Potential for Recovery
Despite criticisms, some experts believe that X retains potential. Gene Munster of Deepwater Asset Management argues that X's unique position in public discourse and valuable data assets could facilitate a future turnaround.
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.