Fidelity, a major investment firm, has indicated that the valuation of the social media platform X has seen a staggering decline, as per various reports.

According to a report released on Sunday, the estimated market value of shares in X held by the Fidelity Blue Chip Growth Fund stands at $4.2 million.

This represents a 79% decrease from the fund’s valuation in October 2022—shortly after Elon Musk took control of Twitter—when the shares were valued at $19.66 million. If we apply this decline to the entire value of X at the time of purchase, it suggests an overall valuation of $9.4 billion, a significant reduction from the $44 billion Musk initially paid for the company.

TechCrunch was the first to publish this updated valuation. It’s worth noting that other firms may assess X’s value differently.

X has not yet responded to YSL News’s request for comment.

Elon Musk and X Navigate Declining Revenue Amid Advertiser Tensions

Since Musk’s acquisition in 2022, X has faced a challenging relationship with advertisers regarding content moderation. X’s CEO, Linda Yaccarino, stated that boycotts from advertisers have resulted in billions of dollars in lost revenue for the company.

At a summit hosted by the New York Times DealBook last November, Musk expressed frustration after several major corporations, such as Apple, IBM, and Walt Disney, withdrew their advertisements following Musk’s endorsement of an antisemitic comment on the platform that he labeled “the actual truth.” Musk referred to the advertising boycott as “blackmail” and suggested those companies could “(expletive) themselves.”

Throughout the past year, the company has pursued legal action against various groups involved in content moderation.

In August, X Corp. initiated a lawsuit against a group of advertisers, claiming they were conspiring to “collectively withhold billions in advertising revenue.”

Updates have been made to this story to include the latest information.