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.
– 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