Elon Musk’s Turbulent Reign: The Steep Decline of X’s Value and Fidelity’s Investment Reassessment

Happenings

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Productions

Happenings

Divisions

Productions

Since Elon Musk assumed leadership, X's worth plunged by 73 percent, leading Fidelity to lower its investment value

The moment Elon Musk took the reins, there's been a dramatic decline in X's worth. Recently, one of Musk's earliest supporters, Fidelity Mutual Funds, downgraded its investment, cutting it down by 5.7 percent. Consequently, X's worth has plummeted by 73 percent.

Elon Musk shelled out more than $44 billion to purchase Twitter, now referred to as X, despite its market value being far less than that. Nevertheless, since Musk has taken the reins, the value of the social media platform has plunged drastically, almost 73 per cent. Even some of the early supporters of Musk's acquisition move are currently reassessing their investments and potential choices.

Fidelity Mutual Funds, an early supporter of Elon Musk, is reconsidering their stance. The company's Blue Chip Growth Fund revealed a 5.7% decrease in the worth of its stake in X in February of this year.

After Musk bought X for $44 billion in October 2022, Fidelity obtained some shares in the company. By February 29, the fund's share was worth $5.28 million, a decrease from $5.6 million in the preceding month.

The ongoing drop in the worth of the Blue Chip Growth Fund's investment in X mirrors a similar fall in the company's total value, considering that the fund hasn't shown any alteration in its stance on X.

X's challenges have been amplified by the departure of advertisers, fueled by concerns over the platform's direction and erratic changes. Even though some advertisers have come back, X's revenue from this sector has significantly dropped.

Following Musk's turbulent acquisition, X has been striving to lure advertisers back to its platform. Despite these efforts, advertising revenue didn't meet the predicted figures last year, with earnings around $2.5 billion instead of the projected $3 billion, according to Bloomberg's report.

Musk drastically changed his strategy towards content moderation, marked by the dismissal of a large number of moderation team members and the introduction of a crowd-sourced fact-checking system called Community Notes, which faced difficulties. The platform continues to grapple with issues such as spam, false information, and offensive language.

The tension between Musk's support for unrestricted expression and the need for responsible content management is clear. Despite his commitment to upholding the ideals of free speech, Musk has conceded to removal requests and limited content from oppressive governments. Striking a careful equilibrium is vital to sustain a balanced online environment.

(Incorporating information from various sources)

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