Elon Musk's X (formerly Twitter) lost an estimated 71.5% of its original value since the billionaire bought the social media in 2022, according to shareholder Fidelity.
The mutual fund giant's November 2023 report revealed that a large portion of its share value has been lost from the initial $44 billion Musk used to acquire the site.
Fidelity's share value losses were first reported by Axios.
This was not the first time Fidelity revalued the X's shares despite not necessarily having inside information on the social media's financial performance.
The mutual trust fund giant, which helped Musk acquire the site, has been routinely lowering its stake's value on X since the billionaire took over in October 2022.
Fidelity, back in May, estimated that X is only worth about $15 billion, less than half of its value in 2021 when it was still called Twitter.
Why is Elon Musk's X Losing its Value?
Reports of X's shares value have become increasingly common in the past year as its owner Elon Musk becomes involved in controversy after controversy.
Many advertisers have left the platform following the increase of antisemitic and pro-Nazi posts on the site.
In November, major brands like Disney and Warner Bros. pulled their ads from the site after reports of hate speech appearing next to their ad posts.
The site has also experienced more system outages in 2023 after the billionaire fired many of the platform's technical staff in 2022.
The ensuing controversies have caused the platform's ad revenue to plummet down throughout 2023, according to Bloomberg.
Also Read: Elon Musk's X Ad Revenue Plunges Down for Entirety of 2023
X Reaches Record-High Traffic, Elon Musk Says
Despite growing concerns about the site's financial capabilities, its owner boasted that the platform has had its highest user traffic for months.
Musk even compared X's organic traffic to Meta's Instagram, showing a higher user visit throughout 2023.
The billionaire has yet to respond to Fidelity's shares report.
Related Article: Elon Musk Boasts Higher Traffic on X Amid EU Probe on Hate Speech, Disinformation
