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In 2023, X earned $2.5 billion in advertising revenue — half of what it did in 2022. X’s headquarters in San Francisco has also closed and moved to Texas.
Currently, the value of social networking platform X has decreased by more than 78% – to about 9.4 billion USD. Notably, in October 2022, Elon Musk had to spend up to 44 billion USD to buy this social network.
X is continuing to lose value after nearly two years, according to data from Fidelity, an asset management fund that owns shares in Elon Musk’s company. The fund values the social network based on its investment.
Specifically, when Elon Musk bought Twitter, Fidelity invested about $19.66 million. By the end of July, the stake was worth $5.5 million. Based on that ratio, the $44 billion Musk spent is now worth $9.4 billion. X is not a publicly traded company, so Fidelity’s figures help estimate the value of this social network.
Billionaire Elon Musk
In 2023, X generated $2.5 billion in advertising revenue — half of what it did in 2022. X’s San Francisco headquarters has also been shuttered and moved to Texas. Remaining employees have been moved to smaller offices.
What’s more, advertisers are also continuing to abandon X. Kantar, a market research firm, surveyed 1,000 executives and 18,000 consumers in more than 20 countries. Accordingly, 26% of businesses plan to reduce advertising spending on X in the next year. This is due to concerns about extremist content affecting brand reputation. Kantar said this is the highest rate among major global advertising platforms.
Previously, Fidelity also regularly valued X with a downward trend in value. In May 2023, more than half a year after Elon Musk took over X, the fund valued the social network at around $15 billion. In early 2024, that figure was only $12 billion.
