- 😃 Elon Musk shares optimistic outlook for X (formerly Twitter) with a potential $1 trillion market cap.
- 📈 Musk responds to valuation estimates by investors, suggesting X could grow over 20X from the $44 billion he paid for it.
- 💰 Fidelity and Baron Partners hold different valuations for X, with Fidelity at $33.34 and Baron at $72.20 per share.
- 🌟 Despite challenges, Musk’s estimate isn’t farfetched, considering Tesla and Facebook both hit $1 trillion market caps.
Elon Musk recently offered an optimistic projection for the future value of X, the platform formerly known as Twitter. According to the CEO of Tesla and SpaceX, there’s a possibility that X could eventually achieve a market capitalization of $1 trillion.
Musk’s positive outlook came in response to a post that outlined how X is currently evaluated by some of its investors. The assessment suggests that X could potentially grow more than 20 times from the $44 billion Musk paid for the platform in October of the previous year. Musk stated, “A trillion-dollar market cap for this platform is not out of the question.”
As Twitter is now a private company, its valuation is no longer publicly listed on the stock market. However, long-time investors of X still maintain valuations for their respective holdings in the social media company. Interestingly, Fidelity and Baron Partners provide notably different estimates for X’s valuation.
By the end of 2022, Fidelity valued its shares at $39.60, while Baron Partners held a more optimistic view, valuing its Twitter shares at $70.20. Despite subsequent developments, both firms have remained consistent in their valuation stance, with Fidelity currently assessing its shares at $33.34 and Baron maintaining a value of $72.20.
What’s particularly intriguing is that the estimated valuations for X by Fidelity and Baron Partners have remained steady despite changes in the company’s leadership, such as Elon Musk stepping down from his CEO role at X, and the emergence of competitors like Meta’s Threads that were seen as potential rivals to the platform.
Although Musk’s projection of X’s potential $1 trillion valuation might appear ambitious at present, such a scenario could indeed be feasible. After all, Tesla achieved and surpassed a $1 trillion market cap despite facing numerous challenges over the years. Additionally, another social media giant, Facebook, reached a $1 trillion valuation in 2021. With Musk’s strategic decisions, X might have a genuine opportunity to become a trillion-dollar company.