Fidelity, which assisted Elon Musk in acquiring Twitter, has reported a staggering 80% decline in its stake in X, now valued at approximately $4.19 million.

Initially, Fidelity invested $19.66 million in X, but as of July 31, its value had plummeted to just $5.5 million.

The overall estimated value of X, formerly known as Twitter, has dropped to under $11 billion, a significant reduction from the $44 billion Musk paid for the platform.

This decline in value is largely attributed to a loss of advertisers and users, driven by concerns over content moderation and Musk's controversial behavior.

Major advertisers, including Apple, IBM, and Disney, have withdrawn their ads from X, citing increasing allegations of hate speech, including accusations of anti-Semitism against Musk.

The outlook for X appears increasingly negative, as reflected in its declining value and advertising revenue, which has dropped from over $1 billion per quarter in 2022 to around $600 million in 2023.

Neither Fidelity nor X provided comments when approached regarding these significant valuation changes.

Fidelity had previously valued its shares in X at about $5.5 million in July, highlighting a substantial decline over recent months.

Musk has warned that without advertisers, X would ultimately fail, yet this statement has not reversed the trend of advertiser departures.

Market data shows that advertisers remain hesitant to invest in X, preferring to allocate their budgets to other platforms.

Musk's ongoing controversial posts are likely to further deter advertisers from returning to the platform in the near future.

The latest markdown indicates an overall valuation of X at around $9.4 billion, reflecting ongoing challenges in maintaining user trust and advertiser interest since Musk's acquisition.