Elon Musk: Ever since Elon Musk took over X (formerly Twitter), the price of X has fallen drastically. Not only this, Fidelity Mutual Fund, one of the early supporters of Elon Musk, has recently devaluation of its investment and reduced it by 5.7 percent. With this, the value of X has fallen by 73 percent. Fidelity Mutual Fund's Blue Chip Growth Fund, one of Elon Musk's early supporters, has also revealed a 5.7 per cent reduction in the value of its position in X during February this year and this is certainly not good news for X. Is.
Elon Musk made historic deal for Twitter
Elon Musk had spent more than 44 billion dollars while making a historic deal for Twitter. However, today's situation is such that the net worth of social media platform X is not even close to this figure. However, since Musk took control of X, the valuation of the social media platform has fallen by approximately 73 percent. Even some of Musk's early supporters, who supported his takeover bid, are now reevaluating their investments and options.
Fidelity is an early investor in X
Fidelity had acquired a stake in X only after Elon Musk's $44 billion purchase of Twitter in October 2022. As of February 29, 2023, the fund valued its position at Rs 5.28 million. However, last month it reduced its value to $5.6 million, which is less than the initial investment. The continuous decline in the value of Blue Chip Growth Fund's stake in X shows a parallel decline in the company's gross valuation. However, it is interesting to note that this Fidelity fund has not given any indication of changing its X position.
Why is the value of X falling
The main reason for the decline in the value of X is the attrition of its advertisers. In fact, ever since the social media platform came into the hands of Elon Musk, big changes are being seen continuously and suddenly in it. However, when the advertisers of"text-align: justify;">X missed advertising sales target last year
According to a Bloomberg report, while X had set a target of ad sales of $3 billion, last year it was actually able to reach the target of only $2.5 billion. However, despite the best efforts of Elon Musk, advertising sales are falling behind the target.
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