How much value has X lost since Elon Musk bought it?

Since Elon Musk’s acquisition of Twitter, now rebranded as X, the social media platform has experienced a dramatic decline in value. Recent disclosures from Fidelity, one of the investors in Musk’s $44 billion takeover, reveal the extent of this financial downturn.

X has lost approximately 75-80% of its value since Musk took over in October 2022.

Fidelity’s Blue Chip Growth Fund, which initially invested $19.66 million in the acquisition, reported that its stake was worth just $5.5 million as of July 2024. Extrapolating from this data, the total valuation of X is estimated to be around $9.4 billion, less than a quarter of the $44 billion Musk paid for it.

What is behind the dramatic fall in value?

Musk’s approach to content moderation has raised concerns among advertisers and users leading to a significant loss of advertising revenue. Major companies including Apple, Coca-Cola, Disney, Comcast, IBM, and the European Commission have pulled their advertising from X. These decisions were often linked to concerns about content moderation, hate speech, and Musk’s own controversial statements.

With the platform’s value continuing to erode, it remains to be seen whether Musk’s vision for X as an “everything app” can reverse its financial fortunes.