X, the social media company formerly known as Twitter, has made a significant financial recovery, achieving a valuation of $44 billion. This marks a dramatic turnaround after a challenging period following Elon Musk's acquisition for the same amount in 2022. According to a report by the Financial Times, X posted $1.2 billion in adjusted earnings for 2024, aligning with its financial performance prior to Musk's takeover.
Despite this positive development, X faced a tumultuous phase post-acquisition. Under Musk's leadership, the company's revenue saw a decline, leading to a substantial drop in its valuation. In September of the previous year, Fidelity Investments had estimated the company's worth to be below $10 billion. This downturn raised concerns about the company's future prospects and its ability to regain its former financial standing.
However, X has managed to reverse its fortunes significantly. Bloomberg reports that the company has successfully raised close to $1 billion from investors, which contributed to its resurgence in value. The latest valuation of $44 billion reflects investor confidence and suggests that X has stabilized its operations and finances.
The Financial Times highlights that X's current adjusted earnings are on par with those before Musk's acquisition. This indicates that the company has managed to restore its profitability and operational efficiency. The financial recovery underscores X's ability to adapt and overcome challenges, paving the way for renewed growth and stability.