X shares fell more than 70% in just over a year

X, in free fall: it lost more than 70% of its value in the Elon Musk era

Yes ok Elon Muskowner of companies such as Tesla, SpaceX and Starlinkposted strong gains, X ex Twitter, lost more than 70% of its value since he bought it. What happens behind?

The company’s shares, which fell 71.5% in just over a yearas revealed by the English media The Guardian based on a survey by the Fidelity fund.

Fidelity – which owns a stake in X Holdings – estimated the value would currently be around $12.5 billion.

Last October it was already worth less than half of what Elon Musk paid since it was listed at US$19 billion, while the sale was carried out for US$44 billion in October 2022.

The Musk era: the company changed its name, logo and also lost more than half of its advertising revenue. In turn, it began charging new users.

In addition to the controversial decisions of the new owner, when he bought the company he had to carry a debt of 13,000 million dollars.

The magnate’s most recent controversy was related to the support for an anti-Semitic comment. After that, the companies decided to remove their ads from X with the argument that “their ads appeared alongside pro-Nazi and pro-Hitler content.” Universal, Airbnb, Sony, Uber, Coca-Cola, Apple, Disney, Warner Bros Discovery (WBD), Lionsgate Entertainment, Paramount Global and IBM are some of the brands that withdrew their advertising of the social network.

The loss, according to estimates, was close to 75 million in advertising revenue. It should be noted that Elon Musk is the richest man in the world, according to Forbes, with a net worth of US$251 billion.