Elon Musk's Social Media Asset X Faces Significant Valuation Drop After Twitter Transition
Elon Musk's Social Media Valuation Crisis
Elon Musk's social media platform X, once known as Twitter, is now worth nearly 80% less than during its acquisition. According to estimates from Fidelity, the platform's value has drastically dropped from $44 billion to approximately $9.4 billion.
Declining Financial Metrics
This rapid valuation decrease reflects significant struggles with advertising revenue and user engagement. Fidelity's shares of X saw a 24% drop in value from July, which raises concerns over the financial health of Musk's investment.
- Ad Revenue Pressure: With rising concerns among advertisers regarding content on the platform, a report indicates that 26% of marketers plan to decrease their spending on X.
- Engagement Trends: Data from Similarweb shows a concerning 20% decline in monthly active users since October 2022.
Expert Opinions
While some analysts argue that Fidelity's estimates are overly pessimistic, others believe that X will ultimately find value in its unique data source, especially for AI applications. Musk's investment in social media continues to prompt industry speculation about the platform's viability moving forward.
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.