Published2. October 2024, 4:03 p.m
Tweeted: Twitter has lost 80 percent of its value since Musk took over
The major investor Fidelity estimates the value of its X shares. And this went steeply downhill in the Musk era.
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Twitter Value: That’s what it’s all about
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According to the investment group Fidelity, Twitter lost 80 percent of its value after Musk’s takeover.
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The reason is the dwindling advertising partners and the extreme content on the platform.
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While other analysts expect a lower loss in value, they agree that Musk paid too much.
From 44 billion to 9.4 billion: This is how the investment giant Fidelity classifies the decline in value of X since it was taken over by Elon Musk. In the time frame from October 2022 to August 2024, this represents a decrease of a good 80 percent.
The platform has no longer been publicly traded on the stock exchange since Musk’s purchase. Fidelity therefore estimates the value of its X shares. At the end of August these were still worth 4.2 million US dollars – at the time of the takeover they were worth 19.66 million.
Advertising partners flee
Analysts tell CNN that the case is related to dwindling advertising customers. Since October 2022, various companies have repeatedly threatened to remove their advertising from the platform. Many have also implemented these threats.
A study by market research firm Kantar shows that 26 percent of marketers surveyed plan to reduce their advertising spending by X in 2025. The reason is the fear that their advertising will appear next to tweets with extreme content.
Musk clearly paid too much
However, Fidelity’s estimate is not without controversy. For example, Dan Ives, stock analyst at the financial services provider Wedbush Securitys, estimated the group’s current value at $15 billion to CNN.
According to Ives, at the time of the $44 billion takeover, Twitter was actually worth $30 billion. Despite this deviation, it is clear to him: “Musk clearly paid too much.”
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