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In a startling revelation, the once-prominent social media platform X, now under the ownership of Elon Musk, has witnessed a dramatic nosedive in its market value. Fidelity, a mutual fund with a stake in X Holdings, recently disclosed a staggering 71.5% markdown in the platform's value since Musk's acquisition. This seismic shift, comes amid a series of controversies and strategic decisions that have left the tech community buzzing.
Elon Musk's foray into the social media realm began with the acquisition of Twitter for a whopping $44 billion in October 2022. Renaming the platform X in July 2023, Musk's vision took an unexpected turn. Fidelity's estimate now places the value of X at approximately $12.5 billion, reflecting a substantial loss since the takeover.
The aftermath of Musk's leadership has seen X grapple with a 15% drop in monthly users within the first year, primarily due to concerns over the platform becoming a breeding ground for hate speech. The company's response included drastic measures such as a significant reduction in staff by 50% and a scaled-down moderation effort.
The woes for X continued as the European Union issued a warning in September, citing the platform's dubious distinction of having the highest ratio of disinformation posts among large social media platforms. Fidelity's revised valuation, based on a disclosure extending to November 2023, captures the repercussions of major companies pulling advertising from X following Musk's endorsement of an antisemitic conspiracy theory.
Musk's unapologetic response to the advertising boycott, where he told companies to "go [themselves]," added fuel to the fire. The disclosure also potentially covers the aftermath of Musk's reinstatement of controversial figures, including former President Donald Trump and rightwing conspiracy theorist Alex Jones, both previously banned from the platform.
As the tech world watches X's precipitous fall, Elon Musk's audacious experiment in reshaping social media stands at a critical juncture. From the controversies surrounding hate speech to the sharp decline in market value, X's journey under Musk's helm raises pivotal questions about the intersection of technology, influence, and responsibility. In a landscape evolving with every tweet and post, Musk's gamble on Twitter and subsequent transformation into X might be a cautionary tale or a prelude to a tech revival. Only time will reveal the true narrative behind this captivating saga.
