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X's Resurgence: Musk's Gamble Paying Off?
18 Oct
Summary
- X's revenue significantly declined to $3.2 billion last year.
- Average time spent on X has increased to three minutes per visit.
- SpaceX's valuation multiple could be boosted by X's presence.
Four years after Elon Musk's acquisition, the platform formerly known as Twitter, now X, is showing signs of a comeback in influential circles. Key changes include longer posts, the return of some prominent users, integration with Musk's AI bot Grok, and its incorporation into SpaceX.
Financially, X has seen a significant revenue contraction, falling to $3.2 billion last year from $5.1 billion in 2022, largely due to an advertiser exodus. However, the platform remains a central hub for discussions in technology and politics, with notable figures from Apple and AI safety engaging on X.
User data presents a mixed picture: while monthly active users have plateaued, the average visit duration has increased. Despite potential interest in rival platforms like Bluesky, user engagement on X persists.
Analysts like Morgan Stanley remain optimistic, projecting substantial revenue growth for X and Grok by 2030. Furthermore, X's role in amplifying Musk's public profile is seen as a positive for SpaceX, potentially enhancing its valuation multiples.
