1 April 2024 – Since Elon Musk’s acquisition of X (formerly Twitter) for over $44 billion, the social media platform’s valuation has plummeted by nearly 73%. Even initial backers like Fidelity Mutual Funds are reassessing their investments, with Fidelity’s Blue Chip Growth Fund disclosing a 5.7% reduction in its X position value.
Elon Musk’s acquisition of X, despite its inflated price, has resulted in a significant decline in the platform’s value since his takeover. This has prompted Musk’s initial backers, including Fidelity Mutual Funds, to reassess their investments. Fidelity’s Blue Chip Growth Fund, which acquired a stake in X following Musk’s purchase, has reported a decrease in the value of its position by 5.7% in February.
X’s struggle to retain advertisers amidst uncertainties about its direction and policy changes has contributed to its financial woes. Despite efforts to lure advertisers back, X’s earnings from advertising have dwindled, falling short of expectations. Last year, ad sales amounted to approximately $2.5 billion, missing the targeted $3 billion mark.
Under Musk’s leadership, X has faced challenges in content moderation, leading to a significant reduction in the moderation team and the implementation of a crowd-sourced fact-checking system called Community Notes. However, combating spam, disinformation, and hate speech remains a formidable task for the platform.
Musk’s advocacy for free speech has clashed with the necessity for responsible content moderation on X. While pledging to uphold free speech principles, Musk has also accommodated takedown requests and restricted content from authoritarian regimes. Striking a delicate balance between free speech and responsible content moderation is crucial for maintaining a healthy online environment.
