Oct 01, 2024 03:50 PM IST
Elon Musk’s X, formerly Twitter, is now valued at $9.4 billion, just 25% of the $44 billion he paid. Fidelity’s holdings in X have dropped to $5.5 million.
Elon Musk bought X when it was called Twitter but what must worry him is that the social media platform’s value has continued to fall. A newly released report from Fidelity’s Blue Chip Growth Fund, which has an equity stake in X, again adjusted the value of that holding and as per the latest calculations, the microblogging site is now worth less than 25% of the $44 billion Elon Musk paid for it.
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When Elon Musk bought Twitter, Fidelity invested $19.66 million and now those shares are worth just $5.5 million which makes the total valuation of X at $9.4 billion.
Last year, X brought in an estimated $2.5 billion in advertising revenue, which was roughly half the amount it earned in 2022. At the time, ad sales made up between 70% and 75% of X’s total revenue.
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This comes as X recently shut down its San Francisco headquarters and moved to Texas while employees who remain in California will be forced to move to a smaller office well outside of the city, it was reported. Although, Elon Musk has attempted to boost morale with the promise of stock grants.
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In March, Fidelity trimmed its valuation on X, following a similar cut in January. Including now, Fidelity has downgraded the worth of its X holdings by a total of 78.7%.
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