HomeNewsHow Elon Musk's X lost more than half its value in one...

    How Elon Musk’s X lost more than half its value in one year

    Published on

    X, the social media platform formerly known as Twitter, has seen its valuation plummet by 55% in one year, according to a report by The Times of India. The company, which was acquired by Elon Musk for $44 billion in October 2022, has given stock grants to employees showing its worth at $19 billion, down from $44 billion last year.

    The report cites a decline in users and revenues as the main reasons for the valuation drop. X has faced backlash from advertisers and regulators after Musk relaxed moderation and allowed more freedom of expression on the platform. Many users have also left X for other platforms that offer more safety and privacy.

    X has tried to diversify its income sources by introducing subscriptions and financial services, but it is still losing money and expects to turn a profit by 2024. According to Business Insider, X has lost an average of $70 million per day since the buyout, making it one of the worst deals in tech history.

    However, X and Musk have defended their vision and strategy, claiming that X is undervalued and has tremendous potential to grow and innovate in the social media space. “X is more than just a social network. It is a super app that offers a variety of services and experiences to our users. We are confident that we will achieve our vision of becoming profitable and sustainable by 2024” – Elon Musk, CEO of X.

    Some analysts and experts have also expressed support for X, saying that it is a unique and valuable asset that has changed the way we communicate and share information. “X is a sinking ship that Musk is trying to salvage with his unrealistic promises and dubious strategies. He has overpaid for a dying platform and now he is paying the price” – Scott Galloway, professor of marketing at NYU Stern.

    The future of X remains uncertain, as it faces competition from other social media giants such as Facebook, Instagram, TikTok and Snapchat, as well as emerging platforms such as Clubhouse, Discord and Substack. X will have to prove its worth to its users, advertisers and investors, or risk becoming irrelevant in the fast-changing digital landscape.

    Relevant articles:
    – X says it is worth $19 billion, down from $44 billion last year, The Times of India, November 1, 2023
    – X Value Dropped Nearly $70 Million Per Day Since Musk Buyout, Business Insider, October 31, 2023
    – Elon Musk’s X says it is worth $19bn one year after $44bn acquisition, Financial Times, October 30, 2023
    – Elon Musk Vows to Make X a Super App By 2024 Despite Valuation Plunge, Observer, October 31, 2023

    Leave a Reply

    Latest articles

    How the Heritage Foundation is preparing for a second Trump presidency

    The Heritage Foundation, a powerful conservative think tank based in Washington, has been ramping...

    U.S. Navy thwarts Iranian attempts to seize oil tankers in Gulf of Oman

    The U.S. Navy has intervened to stop Iranian Navy ships from seizing two oil...

    Melatonin Use in Children: A Growing Trend with Risks and Alternatives

    Melatonin, a hormone that helps regulate the sleep-wake cycle, is widely used by parents...

    Trainwreck: Woodstock ’99 – How a festival of peace and love turned into a disaster of violence and misogyny

    The Woodstock '69 festival is widely regarded as one of the most iconic and...

    More like this

    Popular Science Goes Digital: How a 151-Year-Old Publication Adapts to the Changing Media Landscape

    Popular Science, one of the oldest and most respected science and technology magazines in...

    Melatonin Use in Children: A Growing Trend with Risks and Alternatives

    Melatonin, a hormone that helps regulate the sleep-wake cycle, is widely used by parents...

    Saudi Arabia’s oil gamble: How the kingdom is trying to boost demand and avoid a bust

    Saudi Arabia, the world's top oil exporter, is reportedly planning to artificially boost oil...
    %d bloggers like this: