Fidelity Investments, a major investment firm, has significantly reduced its valuation of X, formerly Twitter, by a staggering 79% since Elon Musk acquired the social media platform. The move reflects the growing concerns surrounding X’s financial health and future prospects under Musk’s leadership.

Fidelity’s valuation, which is based on its own internal assessment of the company’s worth, plummeted from $25.46 per share in April 2023 to $5.39 per share in its latest update. This drastic decrease underscores the significant decline in investor confidence in X since Musk’s controversial takeover.

Several factors contribute to this downward trend. Musk’s abrupt changes, including mass layoffs and a chaotic transition to a paid subscription model, have alienated users and advertisers. The platform has also faced increasing competition from other social media giants, while its user base has shrunk since Musk’s arrival.

Furthermore, X’s revenue has significantly declined, with advertising revenue falling by half in the first quarter of 2023. The company has also been embroiled in legal battles and regulatory scrutiny, further adding to its woes.

While Musk has claimed that X is on a path to profitability, the Fidelity valuation paints a starkly different picture. It raises serious questions about the platform’s long-term viability and the sustainability of Musk’s ambitious plans. As investors continue to evaluate the situation, the future of X remains uncertain, and its value could continue to decline.