X Bounces Back to $44 Billion Valuation After Tumultuous Year

Elon Musk's social media platform X, formerly known as Twitter, has reportedly regained its $44 billion valuation, according to a new report from the Financial Times. This marks a significant turnaround for the platform, which had seen its valuation plummet to below $10 billion just last September.

The report states that X has raised close to $1 billion from investors in a deal that values the company at around $32 billion. Musk himself participated in the equity raise. While the $44 billion and $32 billion valuations differ, it's clear that X has made substantial financial progress since Musk's controversial takeover in 2022.

After Musk's acquisition, X experienced a significant drop in revenue. However, the platform managed to post $1.2 billion in adjusted earnings (EBITDA) for 2024, which is about the same as the amount before Musk's takeover. This suggests that Musk and his team have been able to stabilize the company's financials and return it to profitability.

The rebound in X's valuation is particularly noteworthy given the platform's tumultuous year. Musk's leadership has been marked by mass layoffs, policy changes, and a general sense of uncertainty. However, it appears that the company has weathered the storm and is now poised for a stronger future.

It remains to be seen whether X can maintain this momentum and continue to grow its user base and revenue. The platform still faces significant competition from established social media giants like Meta and newcomers like Threads. Additionally, regulatory scrutiny and concerns over content moderation continue to loom large.

Nevertheless, the reported $44 billion valuation is a positive sign for X and its investors. It suggests that the platform has the potential to regain its footing and become a more viable player in the social media landscape. As the tech industry closely watches X's progress, it will be interesting to see how the platform navigates the challenges ahead.