X (Twitter) value dropped by 72 percent!

Fidelity in x latest valuation of its shares, Elon Musk’s social network is approximately the same as when Musk acquired the company in October 2022. 71.5 percent more little value shows that it is. Musk, who paid 44 billion dollars to Twitter, has been in trouble since he changed the company’s name and logo. So why did the value of X drop so much?

How did the value of X drop by 71.5 percent?

Fidelity’s Blue Chip Growth Fund has a relatively small stake in X. The fund’s monthly update lists the value of “X Holdings Corp.” Company’s stock as of November 30, 2023 $5.6 million. Fund’s share of X initially $19.7 million was worth but had lost about two-thirds of its value by April 2023 and has fallen more modestly since then.

Assuming the fund doesn’t reduce its holdings in 72 percent It shows that it has fallen. This is a pretty big number. What Musk paid for Twitter a year ago $44 billion Considering the decline in Fidelity’s valuation, the value of $12.5 billion It means it will happen.

X reportedly valued himself at around $19 billion in October, based on the value of stock grants given to employees. Because Musk keeps Twitter private, it is more difficult to determine the company’s value and revenue externally. X’s valuation was shaky enough on the one-year anniversary of Musk’s acquisition. Musk made matters worse by posting a positive response to an anti-Semitic tweet in mid-November.

X has had trouble retaining advertisers during Musk’s tenure, largely due to its content moderation approach. Shortly after Musk became the owner of the company, he laid off most of the company’s staff. For such reasons, the value of X experienced major decreases in 2023. We will see together whether the course of things will change in 2024.

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