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X’s Value Plummets by 80% Since Musk’s Acquisition, Fidelity Estimates. Fidelity estimates that X, the social media platform formerly known as Twitter, is now worth nearly 80% less than when Elon Musk bought it for $44 billion in 2022, CNN reports. As of August 2023, Fidelity values X at just $9.4 billion, marking a steep decline from its initial worth. The decline likely reflects shrinking ad revenue, as X no longer publicly releases financial data, and advertisers have raised concerns about content on the platform. Fidelity’s assessment represents a 24% drop from July, and it suggests a dramatic reduction in X's value since Musk’s acquisition. Some advertisers have been hesitant to work with X due to concerns about their brands appearing next to extreme content, contributing to the platform’s financial difficulties. Musk’s inflammatory remarks, including a backlash from brands after he embraced an antisemitic conspiracy theory, have worsened the situation, although he later apologized. While X reported 570 million monthly active users in Q2 2023, Similarweb data shows a decline in U.S. engagement, with an 11% drop year-over-year. Outside the U.S., X's global traffic remains stronger, although the overall decline in the platform’s engagement is evident. Some analysts believe that X is undervalued by Fidelity’s estimates, suggesting that its long-term potential, particularly in AI development, could be worth more than $44 billion. X's data has proven valuable in training Musk’s AI startup Grok, which could be Musk’s biggest future wealth source.
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