It seems X, formerly known as Twitter, is missing out on the typical Musk Midas touch. Since the founder of SpaceX and Tesla, Elon Musk, acquired the social media platform in October 2022 for $44bn, the company has lost more than two-thirds of this value according to an Axios report from January 2024.
X experiences another value cut after Fidelity markdown
This investment firm assisted Musk to seal the acquisition deal. Reportedly, Axios indicated a further 11% loss in value after a portfolio update for the Fidelity Blue Chip Growth Fund. X suffered a series of markdowns by Fidelity after it battled to hold onto platform advertisers.
After the Twitter takeover, Musk implemented a string of sudden, and often contentious, changes. These included drastic staff cuts, screening international offices, and overhauling moderation policies and verifications.
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According to Bloomberg, the moves did not go down well with advertisers. The 2023 financials reflected the dismal position as marketing sales for the year were only $2.5bn in comparison to previous records of $1bn per quarter.
Musk’s explosive reactions to the situation did not help matters. In November 2022, he profanely aired his views. In the same month, he also agreed with a post that alleged that Jewish people harbour a ‘dialectical hatred’ of white people. This elicited discontent from political circles, Tesla Inc. (TSLA) investors, and corporate biggies such as Walt Disney Co. (DIS), and Apple Inc. (AAPL).
These events do not paint a rosy picture for X. Although private, management decisions in this company invariably influence Musk’s other financial interests.
