Twitter Usage Declines in the US Following Elon Musk's Rebranding to X
Since Elon Musk's acquisition and rebranding of Twitter to X, the social media platform has experienced a significant decline in daily app users in the United States. According to data from app-monitoring company Sensor Tower, as of February 2024, X's daily app users in America had fallen by 23% since November 2022, just after Musk completed his takeover. This decline surpasses that of other major social networks, with TikTok experiencing a decrease of nearly 10%, while Facebook, Instagram, and Snapchat had user slumps of less than 5% during the same period.
Globally, X's user base fared slightly better, with a 15% reduction in daily active app users, totaling 174 million. It's important to note that Sensor Tower's data does not track users who visit the social network through the web or desktop apps. Despite the decline in app users, X implicitly refuted Sensor Tower's claims in a public post, stating that 250 million people use X every day, with 550 million visiting every month. The company also highlighted an increase in daily average time spent on the platform and daily active user minutes year on year.
The rebranding and subsequent changes have also impacted the company's value, as evidenced by assessments from fund manager Fidelity, one of the investors in Musk's buyout of the previously publicly traded company. Fidelity's blue chip growth fund, which holds its stake, has continuously marked down the value it attributes to the company, resulting in a 71.5% reduction in value from November 2022 to November 2023, bringing the assessed value for the overall company to just over $12.5 billion.
In addition to the decline in user base and company value, Musk's leadership of X has been marked by legal disputes, including a lawsuit against the Center for Countering Digital Hate, a non-profit that has published reports chronicling the rise of explicit and hateful content on the platform since Musk's acquisition. Despite these challenges, Musk's rebranding efforts and strategic changes continue to shape the future of the platform.