The value of X (formerly known as Twitter) now sits at less than a third of the price its owner, Elon Musk, bought it for in 2022, a new report from Axios reveals.
Fidelity believes that X experienced a 71.5% drop in value compared to its value in 2022.
Additionally, the financial services corporation, which helped Musk make the purchase, reduced the value of its shares in the platform by 11% as of the end of November.
What Has Changed Since Musk's Takeover?
Following Musk's acquisition of X in 2022, the social media giant experienced a series of changes, both within its workforce and platform.
These included mass layoffs, the changing of its name and logo, the reported rise in hate speech, and more. As a result, the platform lost over half of its top advertisers, with many opting to halt their ads in X at the start of the year.
More recently, industry giants including Disney, Apple, IBM, and more have stopped advertising on the platform, following a Musk tweet that was perceived as support for an anti-semitic conspiracy theory and reports that their ads were seen alongside pro-Nazi content.
Despite the consequences, and after apologizing for not being clearer on what he actually meant with the alleged anti-semitic comment, Musk called out advertisers and told them to "go f**k yourselves" in a recent interview at the New York Times Dealbook Summit, singling out Disney CEO Bob Iger.
According to the Bloomberg report, the damages have caused X's ad revenue from ad sales in 2023 to sit at around $2.5 billion, marking a 40% drop from the previous year, and lagging below expectations of the company making around $1 billion per quarter.
Previously, the New York Times stated that the corporation might face a potential loss exceeding $75 million in advertising revenue sales for the rest of 2023.