Twitter valuation has plummeted following Elon Musk’s controversial takeover of the social media platform in October of last year. The tech world was left buzzing when the SpaceX and Tesla CEO announced his acquisition of the popular social network. However, it seems that Musk’s unorthodox approach to running X has caused widespread concerns among investors and users alike.
Twitter or X as it is now called, once considered a tech giant, has seen its stock price steadily decline since Musk’s takeover. Shares that were once trading at all-time highs have taken a sharp nosedive, resulting in a significant reduction in the company’s market capitalization. Many investors are expressing doubt about the platform’s future under Musk’s leadership.
In a recent disclosure, mutual fund behemoth Fidelity has revealed a significant 8% reduction in the value of its shares in X during the month of September. This development comes on the heels of Fidelity’s substantial financial backing of Elon Musk’s $44 billion takeover of the social media platform. Fidelity, a prominent player in the world of investment, had initially contributed more than $300 million to support Elon Musk’s acquisition of X. However, the new disclosure highlights a noteworthy decrease of nearly 65% in the value of Fidelity’s investment over the course of the first 11 months since the takeover.These financial maneuvers by Fidelity underscore the evolving dynamics and uncertainties surrounding X’s post-Musk era.
What went wrong?
Musk’s tenure as X’s new CEO has been marked by a series of controversial decisions and tweets, which have led to increased volatility in the stock market. His penchant for making unfiltered and sometimes divisive statements on the platform has raised concerns about X’s reputation and user engagement.
Furthermore, Musk’s abrupt changes in the platform’s algorithms and user interface have left many users disoriented and frustrated. Long-time users have expressed their dissatisfaction with the new Twitter experience, which has further contributed to a decline in user engagement. Advertising revenues as well as downloads of X from app stores have both fallen significantly under Musk’s leadership.
Some industry experts believe that Musk’s takeover was driven by his desire to exert control over a platform with millions of users and a prominent influence on public discourse. However, his unconventional approach has resulted in a loss of trust from users and a decline in the platform’s market value.
As X’s valuation continues to plummet, questions are being raised about the long-term prospects of the social media platform. Investors are closely monitoring the situation, hoping for a reversal in the company’s fortunes. Whether Musk’s leadership will prove to be a boon or a bane for X remains uncertain, but the current trajectory is undeniably causing concern in the tech world.
It remains to be seen whether Musk can steer X back on course and restore investor confidence, or if the social media giant will continue to face turbulent times under his control. The future of X, once a thriving social network, now hangs in the balance, and the tech world is eagerly awaiting the next chapter in this unfolding story.