re: "Twitter-X has been a colossal failure since Elon purchased the platform"

Couple of things to unpack

quote:

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On Monday, employees at X were awarded equity in the company at a valuation of $19 billion

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These valuations are not necessarily accurate representations of the true valuation of the company. It’s actually beneficial to the employees to have a lower valuation, as they’ll make more in the event of an IPO (the larger the spread, the more in an employee’s pocket). We’ve actually had to explain this to board members as they sometimes don’t understand how this works for private companies. BTW, it’s not an inaccurate valuation, it’s just one that will be at the lower end of the valuation range that can still be justified to the auditors(valuation is an art, not a science).

Regarding market cap, Twitter/X does not have a market cap, as it is not listed on a market that provides an arms length share value. It has a valuation, and valuations can vary based on the set of assumptions used. In practice, you’d like to value using three different approaches and see where the ranges overlap.