Social media site X, formerly known as Twitter, which Elon Musk acquired for $44 billion in October 2022, is now worth $9.4 billion, according to new estimates from Fidelity.
Fidelity reduced the value of X by nearly 80% (78.7% to be exact) in its Blue Chip Growth Fund annual report filed on Saturday. Fidelity's initial investment of $19.66 million in Company X, just before Musk took office, was worth $5.5 million as of July 31, according to the filing. Blue Chip Funds invest in established companies and aim for long-term growth.
Elon Musk. Photo credit: Jon Shapley/Houston Chronicle, Getty Images
This is not the first time X has received a valuation cut from Fidelity.
Related: Elon Musk officially moves Company X from San Francisco: 'I have no choice'
In December, Fidelity revealed that Company X's value was 71.5% lower than the $12.5 billion valuation it was valued at when Musk bought it. In October 2023, Fidelity valued X at $19 billion.
More than one in four marketing companies (26%) plan to reduce ad spend on This will be the largest withdrawal ever. X also had the lowest overall percentage of marketers who found advertising on the platform to be trustworthy and innovative compared to Instagram, YouTube, and TikTok.
In October 2023, Apple, IBM, and Disney removed ads from X in response to Musk's anti-Semitic posts. They were the 11th, 5th, and 8th largest advertisers on X.
Related: New data shows X is losing users and struggling to attract creators
