Musk Gets Damaging News

(StraightShooterNews.com) – In the aftermath of the damage caused by leftwing organizations targeting free speech, Fidelity Investments has significantly marked down its valuation of X Holdings Corp., the parent company of the platform formerly known as Twitter, following Elon Musk’s acquisition of the company in October 2022.

Fidelity’s reassessment indicates a 71.5% decrease in value, with the investment firm reducing the valuation by about 10.7% in November alone, lowering it from an estimated $6.3 million at the end of October to just under $5.6 million by the end of November.

Musk’s time as the new owner of the social media platform has been marked by controversy and challenges. The platform faced several scandals towards the end of the year, including accusations of antisemitism against Musk and reports by Media Matters for America of mainstream brands’ ads appearing next to pro-Nazi and white nationalist content on X. This led to a significant number of major companies stopping their advertising on the platform, prompting a firm response from Musk.

In response to the adversities and advertiser boycotts, Musk, who also owns Tesla and SpaceX, has implemented several changes to X, including alterations to the platform’s hate speech and misinformation policies.

However, Musk’s actions led to further scrutiny from entities like the European Union, particularly concerning the platform’s approach to violent content and disinformation during the Israel-Hamas conflict.

The situation has been further exacerbated by a decline in the platform’s user base and advertising revenue. Since Musk’s takeover, X has seen a 16% drop in daily active mobile users and a significant departure of advertisers. The platform’s top 100 advertisers were reduced to only 54 by September 2023, according to Sensor Tower data.

Musk’s approach towards these issues has been confrontational, notably with his public criticism of marketing agencies and major brands like Disney. He acknowledged X’s bankruptcy risk due to the prolonged advertiser boycott but maintained a defiant stance, expressing his thoughts at a New York Times event.

Despite these setbacks, there have been some positive developments, with X’s CEO Linda Yaccarino claiming that 90% of the top 100 advertisers from the previous year had returned to the platform.

However, Fidelity’s valuation shows a downward trend, suggesting ongoing financial and reputational challenges for the platform under Musk’s leadership.