Elon Musk’s ambitious plans to transform X, formerly known as Twitter, into the ultimate “everything app” have been receiving praise from notable individuals in the industry. After Reddit co-founder Alexis Ohanian commended Musk’s efforts, Omeed Malik, CEO of Farvahar Partners and a veteran Wall Street executive, has also lauded the billionaire entrepreneur’s endeavors.
During an appearance on CNBC’s Last Call, Malik addressed concerns about X’s declining value, which has fallen to less than half of its purchase price. He suggested that evaluating X’s worth based solely on Fidelity’s metrics might not be the most accurate approach. Malik referred to Fidelity’s decision to raise X’s value in its fund by 11% in December, despite holding the stake at a 68% discount compared to Musk’s original purchase price. This implies a valuation of approximately $14.1 billion.
Malik highlighted how various companies are utilizing X, citing Tucker Carlson’s success on the platform. He emphasized the remarkable traction Carlson’s videos have garnered and stated that as advertisements start rolling out on X, the platform’s potential for revenue generation becomes evident. Malik even compared the cost of advertising on X to the price of a Super Bowl commercial, stating that X offers a higher value.
Under Musk’s leadership, X has undergone a dramatic transformation since its acquisition for $44 billion in October 2022. The platform has seen significant changes in content guidelines and staffing, resulting in a decline in advertising revenue. Musk aims to pivot X towards paid subscriptions rather than relying solely on advertising. However, the implementation of this strategy has encountered challenges.
Despite the hurdles, Musk’s efforts to integrate sports betting with BetMGM on X have also received praise. The gradual release of various products and partnerships aligns with Musk’s vision of building the ultimate “everything app,” as he has stated.
It is important to note that X’s journey under Musk’s leadership has not been without its struggles. However, the transformation and potential for growth that Musk envisions have garnered recognition from industry experts. The future of X as an all-encompassing app remains uncertain, but Musk’s determination and innovative approach may pave the way for its success.
As we witness the evolution of X, it will be interesting to see how Musk’s plans unfold and whether the platform can truly become the ultimate “everything app” he envisions.
