Social media platform X (former Twitter) is believed to have lost 79% of its value since being purchased by Tesla and SpaceX CEO Elon Musk for $44 billion in 2022.
The newest valuation is based on the recent disclosure report shared by Fidelity’s Blue Chip Growth Fund, which owns a stake in X. According to the report, the fund’s original investment of $19.66 million is now valued at $5.5 million.
Based on Fidelity’s projections, the X is now worth just $9.4 billion. Back in March, Musk himself said the company was worth $20 billion.
The sharp decline in X’s value is likely a result of the platform’s dwindling advertisement revenue, which accounts for more than 70% of its total revenue. It is estimated that X brought in $3.4 billion in ad revenue for 2023 compared to $4.4 billion in the year prior and $5 billion in 2021.
Lately, a large number of advertisers have decided to lower or cut entirely their spending on X advertisements due to concerns about the platform’s content. This led to X’s advertisement revenue in the first six months of 2024 to come at $744 million. Experts believe that the trend will likely continue in 2025.
X has attempted to soften the blow by employing various cost-cutting tactics. This included a series of layoffs and, more recently, the decision to move the company’s headquarters from San Francisco, California, to Bastrop, Texas.