Elon Musk’s X Valuation Plummets: Fidelity Estimates Nearly 80% Loss Since Purchase
In a startling revelation, financial services firm Fidelity has estimated that Elon Musk’s social media platform, X, is now worth nearly 80% less than the $44 billion he paid for it in late 2022. This dramatic decline highlights the significant challenges and controversies that have surrounded the platform since Musk took control.
Fidelity’s latest valuation, which came to light in a recent report, suggests that the social media site, formerly known as Twitter, has struggled to retain its users and advertisers amid a series of contentious changes brought about by Musk’s management style. Following his takeover, the platform underwent numerous transformations, including significant staffing reductions, reinstated controversial accounts, and a shift in content moderation policies that raised alarms among advertisers and users alike.
Since Musk’s acquisition, X has seen fluctuating user engagement levels, which has resulted in a loss of advertising revenue, a critical lifeline for the platform. The once-dominant social media service, often a go-to for news, political discourse, and entertainment, now faces a growing public skepticism about its ability to maintain a healthy user base and attract advertisers in an increasingly competitive market.
Investors and analysts are left wondering whether Musk can turn the tide or whether X will continue on its downward trajectory. As the platform navigates these turbulent waters, its future remains uncertain, and stakeholders are closely monitoring the impact of Musk’s bold and sometimes controversial decisions.
Fidelity’s report serves as a sobering reminder of the volatility associated with social media investments and raises questions about the long-term sustainability of X under its new ownership. As the platform seeks to redefine itself in the ever-changing social media landscape, only time will tell if it can reclaim its once-prominent position—or if it will remain a cautionary tale in investment history.
