**The Value of Elon Musk’s X Platform has Decreased by 71.5% Since Purchase: A Fidelity Report**
The landscape of social media has been greatly impacted by the recent news that X, the platform previously known as Twitter, has experienced a significant decline in its value since its acquisition by Elon Musk. According to a Fidelity securities filing dated Dec. 30, 2023, the estimated worth of X has decreased by 71.5% since Musk’s purchase in October 2022. The asset management firm, a stakeholder in X Holdings Corp., has revised its valuation of X to merely a third of Musk’s initial $44 billion investment. This sharp decline in value raises concerns and prompts a closer examination of the events and controversies that have shaped the platform’s trajectory.
**Fidelity’s Report: A Clear Indicator of Plummeting Value**
The Fidelity’s Blue Chip Growth Fund, in its report dated November 30, 2023, revealed that its shares of X are currently valued at $5.3 million, a significant drop from the estimated $6.3 million in October. This marks a dramatic contrast from the $19.66 million valuation of its stake just prior to Musk’s acquisition. These numbers clearly portray an alarming downward trend, capturing the attention of both investors and industry observers.
**The Fallout: Controversies, Advertiser Backlash, and Declining Market Confidence**
The platform’s decline in value is not an isolated event but rather a consequence of a series of controversies and negative publicity following Musk’s ownership. Notably, X experienced a significant exodus of advertisers, with more than half of them ceasing their spending on the platform within a month of Musk’s acquisition. Major corporations such as Disney, Apple, and Coca Cola withdrew their paid advertising from the platform, distancing themselves from Musk after his controversial endorsement of an antisemitic post. This move by prominent advertisers was a clear indication of the waning confidence in the platform under Musk’s leadership.
**Musk’s Missteps and Apology**
One of the pivotal moments that contributed to the platform’s downfall was Musk’s public endorsement of an antisemitic post, which sparked widespread backlash from both users and advertisers. His praise for the post, which contained derogatory statements targeted at the Jewish community, elicited a strong negative response and led to a loss of trust in his judgment. The subsequent apology from Musk, acknowledging his error and expressing regret for engaging with the contentious post, sought to address the damage caused. However, the repercussions of his actions had already taken a toll on the platform’s standing and market perception.
**The Stark Warning and Defiant Stance**
Addressing the severity of the situation, Musk warned that the ongoing ad boycott could potentially “kill the company,” acknowledging the existential threat it posed. Despite this dire outlook, he adopted a defiant stance at The New York Times’ DealBook Summit, urging the advertisers to cease their campaigns and dismissing any attempt to influence him through advertising expenditures. This bold and unyielding posture from Musk further accentuated the tumultuous scenario surrounding the platform.
The turbulent journey of X, from a high-profile acquisition to a significant decline in value, serves as a cautionary tale in today’s dynamic social media landscape. The events following Musk’s ownership highlight the impact of controversies and the crucial role of advertiser confidence. As the platform navigates its challenges, the industry will closely monitor its responses and strategies. The unfolding narrative of X underscores the far-reaching implications of corporate leadership and the delicate balance between innovation, responsibility, and market trust.