X, formerly known as Twitter, is struggling financially and in terms of user base. Since Elon Musk bought the company in 2022, X's value has dropped by over 70%. X is also projected to lose millions of monthly active users in the U.S. through 2025
X was supposed to be in the black raking in profits by now
Elon Musk said he wanted to turn Twitter into the “town square” and “everything app.” He has failed at both.
Also: some observations
Financial decline
X's annual revenue peaked in 2021 at $5 billion, but has been declining since then.
Fidelity Investments, an investor in X, has written down its investment value.
X has faced reduced advertising revenue.
User base declining
X is expected to lose millions of monthly active users in the U.S. through 2025.
Some users have turned to alternative channels like Threads, Meta, and TikTok.
Factors contributing to decline
Paid features: X has introduced paid features like X Blue, post editing, and text formatting.
Mass layoffs: X has laid off a significant number of employees.
Fines: X has been fined for failing to comply with search warrants and for not properly disclosing information about child abuse content
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