X Valuation Plummets by Nearly 80% Since Elon Musk's Acquisition
Wednesday, 2 October 2024, 02:00
X Valuation Decline: An Overview
The social media platform X, formerly known as Twitter, has seen its valuation drop nearly 80% since Elon Musk's acquisition. Originally bought for $44 billion, Fidelity now estimates X's worth at around $9.4 billion.
The Financial Landscape
- Fidelity's Valuation: As of the end of August, shares were valued at approximately $4.2 million.
- Ad Revenue Issues: Analysts attribute the drop to dwindling advertising revenue committed to X.
User Engagement Trends
- Monthly Active Users: X reported 570 million active users, but engagement metrics show troubling declines.
- US Traffic Drops: Research firm Similarweb cites a 20% drop in US traffic since Musk's takeover.
Market Reactions and Analyst Opinions
Market analysts are mixed on the future of X. Some believe that Musk, while overestimating X's value, could utilize the platform's data for innovative AI developments. Others cite Musk's controversial remarks as detrimental to ad relationships.
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.