X platform experiences 71 percent drop

Elon Musk's X platform has seen a 71 percent decline in value as advertisers pull back.

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X platform, which Elon Musk purchased for 44 billion dollars in October 2022, has seen its value drop to 14 billion dollars following the withdrawal of advertisers. According to Fidelity's financial assessments, Musk's X is now worth less than a third of its initial purchase price.

COMPANY VALUES ARE FALLING

Based on statements from the financial services company Fidelity, X's value continues to decline rapidly. The 44 billion dollar acquisition made by Elon Musk in October 2022 is being negatively impacted by the departure of advertisers from the platform.

According to Fidelity's portfolio update as of the end of November, the value of its shares in X was reduced by another 11 percent. The investment fund company made this assessment after observing the decline in the value of X, which has been struggling to attract the interest of advertisers.

WALT DISNEY AND APPLE DISTANCE THEMSELVES FROM X PLATFORM

The turmoil following Musk's acquisition of Twitter, including layoffs, the closure of international offices, and sudden changes to the platform's policies and verification systems, has driven advertisers away.

According to Bloomberg News estimates, revenue from advertising sales in 2023 is expected to remain well below the previous rate of approximately 1 billion dollars per quarter. In November, Musk's endorsement of a controversial post and his use of profanity toward advertisers leaving X further damaged the platform's reputation.

Major corporate brands such as Walt Disney and Apple have also reviewed their relationships with the platform, criticizing Musk's stance on Twitter.

News Source: 12punto