The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.
Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.
Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.
The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.
Sounds more like the market wanted to play Elon for the fool he is. Especially considering the depreciation thus far. But hey, I don’t think he bought it for money. I think he bought it to silence his critics, destabilize an organizing platform, and get buddy buddy with the “right” people by allowing Nazis and crypto fascists back on the platform.
It’s not just Elon. If any company is being bought out at $X/share, then the stock price will quickly approach $X.
Once someone is willing to buy at $X, everyone else won’t sell for much less than $X. Imagine you have an old vinyl record and today you learned that some people are paying $100 for it. Maybe it wasn’t worth much to you yesterday, but now it’s worth a lot to you too.