The value loss of social media giant X (formerly Twitter) continues to surprise industry experts. According to a recent analysis by investment firm Fidelity, the platform has lost 79% of its value since being purchased by Elon Musk.
X (Twitter) stock value at a two-year low!
Fidelity’s assessment is quite noteworthy, as the firm had directly supported Musk’s acquisition of X in 2022. Additionally, Fidelity still holds shares in X, giving it detailed insight into the platform’s current situation.
According to a report by TechCrunch, Fidelity’s initial investment in X was valued at $19.66 million. However, the company’s most recent financial report indicates that the value of its shares in X is now only $4,185,614. These figures point to a staggering loss of about 79%.
Two years after Elon Musk's acquisition of X (Twitter), the company has released its platform transparency reports.
In fact, signs of X’s value loss have been evident for some time. In January 2024, Fidelity had already assessed the value of its shares in X to be 71.5% lower. Recent documents have also revealed how sharply X’s revenues have declined.
Another factor complicating the situation involves advertisers on the platform. Companies that have rapidly distanced themselves from the platform under Musk’s management are reportedly planning to spend even less on X in 2025, which poses a serious threat to the platform’s revenue sources.
This financial crisis facing X highlights how ruthless competition can be in the social media industry. Once one of the most popular social media sites, it is now struggling for survival.
So how can X overcome this situation? Experts suggest that the platform needs to review its content policies, improve user experience, and regain advertisers’ trust. However, Musk’s controversial management style and the changes on the platform make achieving these goals seem difficult.
