X, the social media site formerly known as Twitter that Elon Musk bought in October 2022 for $44 billion, is now worth $9.4 billion, according to new estimates from Fidelity.
Fidelity marked down the value of X by nearly 80% (exactly 78.7%) in its Blue Chip Growth Fund annual report, filed Saturday. The filing showed that Fidelity’s initial investment of $19.66 million in X just before Musk took over was worth $5.5 million as of July 31. The Blue Chip fund invests in established companies and aims for long-term growth.
Elon Musk. Photo Credit: Jon Shapley/Houston Chronicle via Getty Images
This isn’t the first valuation cut X has received from Fidelity.
Related: Elon Musk Is Officially Moving X Out of San Francisco: ‘No Choice’
In December, Fidelity disclosed that X was worth 71.5% less than when Musk acquired it, at a valuation of $12.5 billion. In October 2023, Fidelity valued X at $19 billion.
A September 2024 media reactions report from analytics company Kantar showed that over one in four (26%) marketing firms plan to cut down ad spending on X next year, the biggest withdrawal from any major social media platform. X also had the lowest overall percentages of marketers who thought ads on the platform were trustworthy and innovative compared to Instagram, YouTube, and TikTok.
In October 2023, Apple, IBM, and Disney pulled ads from X after an antisemitic post from Musk. They were the eleventh, fifth, and eighth-largest advertisers on X.
Related: X Is Losing Users and Struggling to Attract Creators, According to New Data