X’s (Twitter) Worth Falls to $12 Billion

Elon Musk, the CEO of Tesla, SpaceX, and Starlink, recently made headlines with his acquisition of Twitter for $44 billion. Despite his reputation as one of the richest individuals globally, his foray into the social media giant seems to be facing challenges.

The current valuation of Twitter, now known as X, paints a challenging picture. Musk’s acquisition has seen a significant decrease in value, plummeting by 71% to $12 billion. This substantial decline raises questions about the success of Musk’s approach to the platform, which has been grappling with financial losses.

Musk’s leadership on Twitter has been marked by a relentless pursuit of solving the platform’s monetization challenges. However, this journey has not been without controversy. Accusations of antisemitism were met with a blunt response from Musk, further fueling criticism and leading to companies like Apple severing their advertising ties with Twitter.

In an effort to diversify revenue streams and reduce dependence on advertising, Musk introduced features like ad-free streaming and curated sharing through the X Premium subscription, courtesy of Grok AI. Despite these efforts, the platform’s value continues to decline, and Musk’s response to criticisms has stirred new problems.

Fidelity, initially supportive of Musk’s acquisition, played a role in diminishing X’s value by 71.5%. Consequently, the platform is now worth only 28.5% of the $44 billion Musk invested in 2022. Meanwhile, competitors like Meta and Snap have seen increased stock values, positioning themselves as more stable options for advertisers compared to X. Musk’s venture into the world of social media appears to be facing turbulent times, raising uncertainties about the future of Twitter under his ownership.