Elon Musk revives X’s valuation to $44 Billion: A financial turnaround success
Elon Musk has revived X’s fortunes, pushing its valuation to $44 billion through bold AI moves, cost-cutting, and a fintech expansion. With investor confidence soaring and advertisers returning, X is positioning itself as a major tech powerhouse once again.
Elon Musk's social media platform, X (formerly Twitter), has regained its original valuation of $44 billion, marking a significant financial turnaround since its acquisition in 2022.
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Musk's cost-cutting and AI strategy drive X’s financial comeback
Following Musk's acquisition, X faced challenges, including advertiser departures and revenue declines. However, aggressive cost-cutting measures, such as workforce reductions, have improved operational efficiency, leading to an adjusted EBITDA of $1.2 billion in 2024.
Investor confidence has been bolstered by Musk's strategic initiatives, including granting X's investors a 25% stake in his AI startup, xAI, valued at $45 billion. This move has enhanced security for lenders and contributed to X's valuation recovery.
Trump's re-election boosts X as Musk pushes for AI and fintech expansion
The re-election of Donald Trump, whom Musk supported, has also positively impacted X by partially restoring advertiser relationships and increasing investor interest.
Looking ahead, X plans to launch "X Money," a digital wallet service, and integrate AI technologies to enhance user experience, signaling a commitment to innovation and diversified revenue streams.