Twitter/X is reportedly now worth 70% less than Elon Musk paid for it

Elon Musk’s X, formerly known as Twitter, continues to sink in value as one investor now believes it is worth only a third of what Musk paid for it.

Back in October 2023, we reported that some sources were saying that the social media platform known as X, formerly called Twitter, had seen a precipitous drop in value since it was purchased by Elon Musk. New information indicates that the situation may be even worse, with one investor believing the company is now worth only one-third of what Musk paid for it.

The information comes from Mutual Fund Fidelity, one of the investors who helped to provide financing when Elon Musk bought Twitter in October 2022 for $44 billion. Fidelity has now drastically reduced the value of its investment and its valuation of the company.

Valuation falls after string of controversies

Fidelity has downgraded its valuation of Twitter/X by 71.5% compared to when it was first bought. This value drop includes a drop in value of 10.5% that occurred in November 2023, which occurred after Elon Musk took to the stage during an event hosted by the New York Times and memorably told investors who had left the platform to “go f*** yourself.”

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Comparatively, competing social networks such as Snap and Meta had a significantly better month, with Snap gaining 38% in value, while Meta went up 4.9% in stock value during this period.

It is unclear how exactly Fidelity is gaining its information on X/Twitter’s value. The company is an investor, so Fidelity may have access to inside information. Since X/Twitter is no longer a publically traded company, its financial results are not available for an accurate comparison.

Twitter/X is known to have lost significant amounts of investor and advertiser funding since Musk began introducing policy changes. Attempts by the platform to bridge this shortfall with subscription services have seen only limited success.