X/Twitter value plummets (1) infographic
Graphic charts the fall in value of X/Twitter since 2021.
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BUSINESS

Mutual fund cuts X/Twitter value by 72%

By Ninian Carter

January 4, 2024 - Fidelity Investments, which has a $19 million stake in X (formerly Twitter), has devalued its investment by 71.5% following challenges that have led to a sharp drop in the platform’s advertising revenue.

Fidelity Investments mutual fund – which in October 2022 spent $19.2 million to buy a stake in X (formerly Twitter) – has devalued its investment by 71.5% from the original valuation of shares.

Challenges facing X include:

1) Billionaire owner Elon Musk’s decision to restore accounts of previously banned users, who are prone to hate speech, such as conspiracy theorist Alex Jones, former U.S. President Donald Trump, and far-right influencer Andrew Tate.

2) X needs to convince advertisers to return to the platform after big spenders including Apple, Comcast/NBCUniversal, Disney, Warner Bros. Discovery, IBM, and Paramount Global pulled out of the platform due to Musk’s erratic style of management.

3) In November 2023, at the DealBook Summit, Musk told boycotting X advertisers to “go f**k yourself” during an on-stage interview with the New York Times.

To mitigate the loss in advertising revenue, X is now looking to encourage small to medium sized businesses to spend money on the platform.

Sources
PUBLISHED: 04/01/2024; STORY: Graphic News; PICTURES: Getty Images
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