Despite everything that has happened with X since Elon Musk purchased the company, it's still one of the most used social media sites of all time. Even with all of Musk's attempts to make it a better microblogging site, its value continues to decrease to this day.
It Has Reportedly Dropped 72% in Value
The social media company was acquired by Musk back in October 2022 for $44 billion, which is a hefty sum even for the richest man in the world. Since then, X has seen a continuous decline to the point that it has already lost more than half of its value.
Fidelity's Blue Chip Growth Fund has a small stake in X and stated that the social networking site has dropped 71.5% in value since it was purchased by the tech billionaire. The estimation was based on its initial share of $19.7 million, which has now dropped to $5.6 million.
To be clear, this is all just based on an estimation and not the official value provided by the social media company. Furthermore, it's unclear if Fidelity had sold any of its stake around November, as reported by Ars Technica.
Even without the reports from companies who have shares in X, anyone paying close attention to the changes in X can tell that the social site is no longer what it once was. Advertisers are fleeing in fear of being associated with certain posts, and even the X owner himself.
There have already been several events where advertisers had to pull their ads because they reportedly showed up near disagreeable posts. Others stated that they left due to Musk's behavior, particularly his latest controversy after agreeing with an antisemitic post.
Even without the advertisers leaving, other users are not happy with the changes as well, especially with Musk naming it X and dropping the Twitter name completely. Many would say that they would still prefer the old name and the blue bird logo over what they have now.
There's also one of the biggest changes of all, which is the verification system. Twitter used to give out verification to known people in their fields. However, recent changes have eliminated legacy checkmarks and anyone who has a few dollars to spare per month can have them.
The Last Official Valuation Report
Even if the 71.5% decline in value is inaccurate, the company has an official report stating that it has lost more than half of its value since it was acquired by Elon Musk. With it being valued at $19 million, it makes X worth 55% less than its original acquisition value.
When the tech billionaire decided to buy the company, he claimed that it was only worth $20 billion and tried to back out. Ultimately, the Tesla CEO had to purchase the company at a much higher price at $54.20 a share, as per The New York Times.
It's important to note that this valuation update was announced before the mass exodus of advertisers after Musk's controversial view with an antisemitic post. Since then, X has lost advertisers like Disney, Apple, Microsoft, IBM, Warner Bros. Discovery, and more.
