X is melting down: It has lost 75 percent of its value since being sold to Elon Musk

The value of X, formerly known as Twitter, continues to fall. According to a report prepared for the Blue Chip Growth Fund managed by investment firm Fidelity, one of the platform's investors, the value of the firm's shares in X had fallen to 5.5 million dollars (188.1 million Turkish Lira) as of July 2024.

According to the report, X's current value is in the 9.4 billion dollar (321.5 billion TL) range. This figure, which is less than a quarter of the 44 billion dollars (1.5 trillion TL) Musk spent on X, shows that the Tesla boss's investment has melted away. In 2022, when Musk purchased the platform, Fidelity had made an investment of 19.66 million dollars (672.5 million TL).

As the financial situation at X continues to worsen, the company has taken cost-cutting measures such as moving its headquarters to Texas.

The site generated an estimated 2.5 billion dollars in advertising revenue last year, which is about half of the revenue it generated in 2022. Advertising sales account for 70% to 75% of X's total revenue. Musk has tried to boost morale with promises of stock grants. However, employees remain skeptical after other promises were also not kept.

News Source: 12punto