On October 2, 2024, new data from Fidelity revealed that Elon Musk’s X, formerly known as Twitter, has lost nearly 80% of its market value since its acquisition. Musk purchased the platform for $44 billion in October 2022, but recent evaluations put its current worth at approximately $9.4 billion. This sharp decline underscores the financial struggles X has faced since Musk’s takeover.
The main factor behind this devaluation is a significant drop in advertising revenue, as many major brands pulled their ads from the platform due to concerns over its content moderation policies. Musk’s approach to free speech led to an increase in misinformation, hate speech, and controversial content, which advertisers deemed unsafe for their brands. A 2024 Kantar survey indicated that 26% of global marketers planned to reduce their spending on X, making it the platform with the largest decline in ad budgets.
Despite these financial difficulties, X’s user engagement metrics remain strong. The platform recorded around 570 million monthly active users in Q2 2024, showcasing solid engagement from its global user base. However, U.S. mobile traffic has dropped by 11%, according to Similarweb, raising concerns about its future in its home market. On the other hand, X is seeing stronger growth in international markets, helping to offset some of the domestic losses.
Musk’s ambition to turn X into an “everything app” akin to China’s WeChat remains one of his key goals. By integrating services like payments, shopping, and more, he hopes to reinvigorate its appeal. Additionally, the platform’s association with Musk’s artificial intelligence project, xAI, adds another layer of potential value, with AI tools like Grok being integrated with the platform. Yet, the current valuation remains a stark reminder of the challenges X faces under Musk’s leadership.
