Nearly four years after Elon Musk's acquisition of Twitter, rebranded as X, the platform continues to hold a significant place in public discourse, despite facing ongoing challenges. Musk completed the purchase in 2022 with the declaration that “the bird is freed,” signaling a new era for the social media company. However, while the platform has not fully realized the soaring success Musk envisioned, it remains deeply embedded in the technological and political landscape.
X has evolved in several notable ways since the days of Twitter. The platform now allows longer posts, has welcomed back some prominent users such as former U.S. President Donald Trump, and integrated the AI bot Grok to enhance user interaction. Additionally, Musk merged the platform into his aerospace enterprise SpaceX, linking the social media operation to his broader business interests.
Financially, the transformation has been less successful. Twitter reported annual revenue of $5.1 billion in 2022 and had projected nearly $9.8 billion by 2025, mostly from advertising. However, combined revenue from X and Grok fell to around $3.2 billion last year. Analysts attribute this decline in part to Musk’s approach toward content moderation — emphasizing a “free speech” model with less censorship — as well as his political comments, which reportedly prompted a significant advertiser withdrawal.
User data paints a mixed picture. According to Similarweb, monthly user numbers have either declined or stagnated over the past year. Yet, the average time users spend per visit increased from just over two minutes to three minutes, suggesting deeper engagement among remaining users. Surveys by consumer data provider HundredX indicate that while more than one-third of users are contemplating switching to other platforms, the proportion of active participants providing feedback has remained stable, implying limited actual user loss to competitors.
Supporters highlight X’s distinct advantages, including its wealthy ownership and backing from Wall Street investors. Morgan Stanley, a key financial supporter involved in underwriting the public offering for SpaceX and facilitating the Twitter purchase, projects that revenue from X and Grok could rise significantly, potentially reaching $35 billion by 2030.
For investors in SpaceX, the social media platform serves a strategic function by amplifying Musk’s public profile and influence. SpaceX currently trades at a high valuation, about 21 times its projected revenue for the following year, far exceeding the multiple of other major tech firms such as Meta Platforms, which owns Facebook. Some analysts suggest that if X’s publicity boost raises SpaceX’s valuation by even a fraction, the $44 billion paid for Twitter could be effectively justified.
In summary, while X has not fully met its ambitious financial targets or user growth expectations, it maintains a unique position in the technology sector through its integration with Musk’s other ventures and its ongoing cultural and political relevance.