X Loses Around 80% of its Value After Musk’s Takeover

The famous multinational financial services corporation Fidelity Investments has sharply reduced the value of its stake in social media platform X. The company reportedly cut its valuation by 78.7%, reducing X’s worth to less than a quarter of Elon Musk’s $44 billion purchase price.

X’s market valuation now stands at around $9.4 billion. The platform faces growing pressure to regain momentum, however, investor confidence remains low. Moreover, Fidelity’s repeated cuts infer the uncertain future of X and the challenges Musk faces in taking the platform to an upward trajectory.

According to Fidelity’s Blue Chip Growth Fund, its stake in X is now valued at $4.18 million as of August, registering a decline from $5.5 million in July. It is pertinent to mention here that Fidelity initially invested $19.66 million to support Musk’s acquisition of X.

X’s value has witnessed constant declines as the platform reportedly struggles with user retention and revenue generation under Musk’s ownership.

Looking ahead, the future of X remains uncertain as Musk continues to push for new revenue streams and user engagement strategies. Despite setbacks, X is looking for potential growth areas, which include paid subscriptions and expanded advertising options. However, with investor confidence shaken, Musk will need to deliver tangible results to restore faith in the social platform’s long-term viability and reverse the steep decline in its valuation.

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