- cross-posted to:
- technology@beehaw.org
- cross-posted to:
- technology@beehaw.org
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.
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Takes real talent to lose 71% of a company in a short period of time.
Musk lost 71% of his “investment”. Twitter was never worth that much. Before Musk started mucking with the stock, it was worth about $29 billion, and even that’s still mostly stock and investor BS. Afaik, it was rarely, if ever, actually profitable. Just a capital fund poster child with hopes of monetizing user information.
Ah yes, that makes sense, because Musk bought it at twice what it was worth. /S
Meaning we start at 50%, so valuing it at 28.5% makes no sense, after Musk increased cost to run the company with a high interest loan that cost 1.5 Billion per year in interest. Money that didn’t go into the company, but Musk used to finance the purchase. Then he drove away about 70% of advertisers, and the company is basically bankrupt from those two issues.
The real value is technically zero, because it has negative internal value, and it is running at huge deficits. But if you say there is hope as long as you live, and if you believe Musk is a financial magician, you may attribute some value from that. But again the value is technically as close to zero as you can get for a company that isn’t actually bankrupt with vastly negative assets.It’s value is for pushing propaganda there is a reason the Saudis gave musk money
That’s only a value if someone wants to actually pay for it. The Saudis lend the money at a high interest rate.
Maybe it has value to them to just get it shut down? But why would that be worth 22 Billion plus a long term intensive engagement that threatens to hurt his other businesses too to Musk?
Musk is an idiot Nazi who wants a dictator to rule USA, because a dictator is inherently corrupt, so Musk can easier influence a dictator than a democracy. I sure hope USA doesn’t give Musk that victory.well Musk is pro Trump isn’t he? didn’t trump sign a most lucrative weapons deal with the Saudis?
a few billion is nothing to the saudis in exchange to controlling a narrative over a huge number of easy to manipulate people
they will have splashed about 10x 22 billion just on a world cup to do a bit of sport washing of their image.
a few billion is nothing to the saudis
No amount of money is anything to the saudis. They don’t have wealth, they have a literal spigot that pours out as much money as they want whenever they want it.
Haha, yes I can imagine this go wrong and they’ll say, My bad that went exactly as we expected! Ups I mean not as expected. lol
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That estimate seems fairly high.
edit: Just to be clear, I’d be surprised it it is worth even $5Billion now.
Wait, but Joe Rogan and his chubs were saying how Musk was a genius businessman and will fix the boys problem and turn it into a free speech utopia. /s
Joe Rogan chubs… Not something I ever want to think about. But to be fair, I’m sure a lot of his chuds have chubs for him.
You mean allowing Nazis to run rampant on the platform turns off major advertisers?
Freeze peach
This is the absolute truth.
At the end of the day I can only think that some idiot, who this life has given more wealth than they deserve, spent $44 billion on electricity. It really would be hilarious if I didn’t know where all the money could’ve gone to actually benefit humanity.
It really would be hilarious if I didn’t know where all the money could’ve gone to actually benefit humanity.
True. Societies really shouldn’t allow billionaires at all as long as there are people who struggle to put food on the table.
And this year it will drop further!
I was wondering what that large X close symbol was on imbedded Twitter posts was…
Yeah but how good does Elon feel about himself now that he has a large forced audience?
It’s a great deal unless you’re one of his investors.
$12.5bn is still too high. When Musk bought it, maybe it was worth $8B, but since no one has figured out a way to make Twitter profitable, even that figure would be based mostly on equipment, branding, etc. Since Musk had bought it I say ita worth maybe $3B and will continue to drop.
There’s no revenue and Musk has no ideas that hadn’t already been tried.
It’s dead, how has it retained even this much? I think he would have a hard time selling it for even a fraction of that valuation.
Well my suspicion is the main reason for the name change is to preserve some of the value of the Twitter brand. When Musk’s site inevitably dies, someone else can buy it up cheap.
If you bought it you could theoretically undo the Musk bullshit and get the company back on track towards profitability. That’s definitely worth something to someone.
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Grr that Elon, to hell with him
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