- cross-posted to:
- technology@beehaw.org
- cross-posted to:
- technology@beehaw.org
The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.
Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.
Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.
The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.
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Ah yes, that makes sense, because Musk bought it at twice what it was worth. /S
Meaning we start at 50%, so valuing it at 28.5% makes no sense, after Musk increased cost to run the company with a high interest loan that cost 1.5 Billion per year in interest. Money that didn’t go into the company, but Musk used to finance the purchase. Then he drove away about 70% of advertisers, and the company is basically bankrupt from those two issues.
The real value is technically zero, because it has negative internal value, and it is running at huge deficits. But if you say there is hope as long as you live, and if you believe Musk is a financial magician, you may attribute some value from that. But again the value is technically as close to zero as you can get for a company that isn’t actually bankrupt with vastly negative assets.It’s value is for pushing propaganda there is a reason the Saudis gave musk money
That’s only a value if someone wants to actually pay for it. The Saudis lend the money at a high interest rate.
Maybe it has value to them to just get it shut down? But why would that be worth 22 Billion plus a long term intensive engagement that threatens to hurt his other businesses too to Musk?
Musk is an idiot Nazi who wants a dictator to rule USA, because a dictator is inherently corrupt, so Musk can easier influence a dictator than a democracy. I sure hope USA doesn’t give Musk that victory.well Musk is pro Trump isn’t he? didn’t trump sign a most lucrative weapons deal with the Saudis?
a few billion is nothing to the saudis in exchange to controlling a narrative over a huge number of easy to manipulate people
they will have splashed about 10x 22 billion just on a world cup to do a bit of sport washing of their image.
a few billion is nothing to the saudis
No amount of money is anything to the saudis. They don’t have wealth, they have a literal spigot that pours out as much money as they want whenever they want it.
Wait, but Joe Rogan and his chubs were saying how Musk was a genius businessman and will fix the boys problem and turn it into a free speech utopia. /s
Joe Rogan chubs… Not something I ever want to think about. But to be fair, I’m sure a lot of his chuds have chubs for him.
I mean twitters most valuable assets were it’s brand recognition and it’s huge user base, including celebrities and politicians. So one of the things Musk does is throw away the branding, including the bird symbol which was featured on almost all corpo websites as a widget and replaces it with a generic X. He also opens the gates to previously banned racist sewer humans who trash the public image of the site. Advertising plummets. The user base is still pretty huge, but it’s shrinking. At this point even if he sold it, for a fraction of what he paid, I’m not sure anyone could restore its previous reputation.
At the end of the day I can only think that some idiot, who this life has given more wealth than they deserve, spent $44 billion on electricity. It really would be hilarious if I didn’t know where all the money could’ve gone to actually benefit humanity.
It really would be hilarious if I didn’t know where all the money could’ve gone to actually benefit humanity.
True. Societies really shouldn’t allow billionaires at all as long as there are people who struggle to put food on the table.
And this year it will drop further!
I was wondering what that large X close symbol was on imbedded Twitter posts was…
Yeah but how good does Elon feel about himself now that he has a large forced audience?
It’s a great deal unless you’re one of his investors.
Those are rookie numbers!! I better see -94% by the end of this week!!
Grr that Elon, to hell with him
Money was never the goal. It was sabotage.
This was a hit and I’m betting it traces back to the Kremlin.
Bro, its not a secret. It was the Saudis.
Both, actually.
Musk it’s a CIA agent and he accomplished the work of buying Twitter to make it follow the agenda, it was getting into a progressive left wing place, now it’s a christofascist right wing place. For him owners it’s not wasted money just a well made investment into the spreading of misinformation and fascist propaganda.
He it’s just giving some favors back to his investors.
Source: I work for the CIA too.
Value
There is no new value because currently, it is not for sale.
There is no price for Twitter right now and there wont be again till it goes back up for sale.
Rules were different when it was publicly traded, but articles (and the analysis behind it) like this are clickbait.
The price per share at the time of the purchase was $54.20. This price had already been considered ridiculous at the time. Plenty of analysts had Twitters price at the 10-20$ range.
Just go through the thought exercise of what you think the value is now versus when it was trading at 30-40$ range before the buy out. Now, what do you think its worth?
For illustrative purposes: if I was able to buy shares of Twitter, right now? I would consider paying between 0.5$-4$ a share. I dont think the product or brand is dead, but under Musk its a walking corpse. If I could buy shares now, at that price, I would, but only under the speculation that Musk is out. I would hedge accordingly.
A price only exists when one is willing to pay it. Everything is an opinion until a transaction occurs.
My price for Twitter is 2-5% of the price Musk paid for it (which it DEFINITELY wasn’t worth), and maybe 4-12% of fair market value in the months prior to the purchase. As a machine that turned on and made money, it did so prior to Musk taking over. The price has to factor in the damages done to brand, reputation, product, infrastructure, and what it will cost to rebuild those. Then of course there are the damages to company culture.
So yeah. Probably worth 1-5% of what it was, and only if you can basically guarantee Musk is out as CEO.
Down by 71% but still elon musk is one of the richest in the world and can buy 20 more twitter without batting an eye
