The valuation of X, previously known as Twitter, continues to fall. A recently released disclosure report from Fidelity’s Blue Chip Growth Fund, which holds an equity stake in the social media platform, has once again revised the value of that investment. According to Fidelity’s estimates, the site is now valued at less than 25% of the $44 billion Elon Musk paid for it. When Musk acquired Twitter, Fidelity invested $19.66 million, but as of the end of July, those shares were worth only $5.5 million.
This puts X’s total valuation at approximately $9.4 billion.
As X is not publicly traded, Fidelity’s disclosure is one of the primary means for observers to gauge the platform’s worth.
Last year, the site generated an estimated $2.5 billion in advertising revenue, which is about half of what it earned in 2022. Advertising sales account for approximately 70% to 75% of X’s total revenue.
In light of its financial challenges, the company recently closed its San Francisco headquarters and relocated to Texas. Remaining employees in California will be required to move to a smaller office far from the city.
Musk has sought to improve employee morale by promising stock grants, contingent on performance evaluations via memos. However, employees remain doubtful due to previously broken promises.
Fidelity is not the only stakeholder in X. An August filing revealed that Bill Ackman and Sean “Diddy” Combs, who is currently incarcerated awaiting trial on sex trafficking and abuse charges, also own shares in the company.
Earlier this year, Fidelity reduced its valuation of X in March, following a similar decrease in January. With the latest adjustment, Fidelity has cut the value of its X holdings by a total of 78.7%.
