According to a recent Fidelity securities filing dated December 30, 2023, X, the social media platform formerly known as Twitter, has seen a significant decrease in its worth since Elon Musk's acquisition in October 2022. The asset management firm, Fidelity, which owns an equity stake in the company under X Holdings Corp., has slashed X's valuation multiple times, with the latest estimate showing a 71.5% decrease in value. This new valuation from Fidelity's Blue Chip Growth Fund, which reported data through November 30, 2023, reveals that its shares of X are now worth $5.3 million, down from an estimated $6.3 million in October. This is a far cry from the $19.66 million valuation of its stake just prior to Musk's takeover.

The decline in X's value can be attributed to the numerous controversies that have plagued the platform since Musk's acquisition. Shortly after the deal was finalized, more than half of the platform's advertisers halted spending on X due to concerns over these controversies. In November, major advertisers such as Disney, Apple, and Coca-Cola pulled their paid advertising off the platform in an attempt to distance themselves from Musk. The catalyst for this exodus was Musk's endorsement of an antisemitic post on the platform. He had praised a post that claimed Jews were promoting hatred against whites, a statement that sparked outrage and condemnation.

Musk has since apologized for his endorsement of the antisemitic post. During The New York Times' DealBook Summit in November last year, he expressed remorse, saying, "I am quite sorry." He also acknowledged his mistake in replying to that particular post. However, despite the backlash and the potential consequences for the platform, Musk remained defiant. He stated that he hoped the advertisers would stop and even told them, "Don't advertise." Musk further proclaimed, "If somebody is going to try to blackmail me with advertising, blackmail me with money, go f**k yourself. Is that clear? I hope it is."

The decline in X's value has raised concerns about the future of the platform. Musk himself had previously criticized Twitter, arguing that it posed a threat to democracy and civilization due to what he perceived as a left-wing bias among its leadership and employees. Since taking over, Musk has made significant changes, including firing thousands of employees in the initial months of his leadership. He has also maintained a cavalier attitude towards advertisers and threats of withdrawal from the platform.

Despite Musk's bold statements and controversial actions, it remains to be seen how X will navigate these challenges and regain the trust of advertisers and users. The impact of the recent valuation drop on the platform's long-term viability is uncertain. X, formerly Twitter, and Fidelity have not yet responded to requests for comment on this matter.