X's Valuation Plunges to $33 Billion Amidst Algorithmic Overhauls and Leadership Exits in 2025

Professor Charles Xavier recently encapsulated widespread sentiment regarding the social media platform X, formerly Twitter, with a succinct tweet stating, "> Ya think? https://t.co/FdmWRmzv4d" on September 20, 2025. The accompanying link directs to the Wikipedia page for X, implying a commentary on the platform's tumultuous and frequently discussed state. This rhetorical question reflects the ongoing public and industry scrutiny surrounding the company's direction and operational changes throughout the year.

The year 2025 has seen X undergo significant algorithmic transformations, aiming to prioritize "unregretted user time" by boosting entertaining and informational content. Updates in January, April, and June focused on de-emphasizing negativity and low-effort interactions, leading to considerable user frustration. Many users have reported reduced visibility for comments and replies, fostering a sense of isolation and making it challenging for supportive networks to engage effectively.

Further impacting the platform's stability, Linda Yaccarino resigned as CEO in July 2025, a departure reportedly linked to persistent advertiser concerns and controversies, including those involving X's AI chatbot, Grok. Earlier in March 2025, Elon Musk completed the sale of X to his artificial intelligence company, xAI, in an all-stock deal that valued the platform at $33 billion. This valuation marks a notable decrease from the $44 billion Musk paid to acquire Twitter in 2022.

X's content moderation policies have continued to be a point of contention, with a relaxed approach under Musk's "free speech absolutist" stance leading to the reinstatement of previously banned accounts. This shift has fueled concerns among advertisers, with a 2024 Kantar survey indicating that only 4% of marketing professionals believe their brands are safe on X. Consequently, 26% of marketers globally plan to reduce their ad spending on the platform in 2025.

User sentiment remains sharply divided, with Republican users generally holding more positive views of X compared to their Democratic counterparts. Dissatisfaction with the platform's changes has prompted many users to explore alternative social media sites, such as Bluesky and Mastodon. These competitors have seen increased adoption from users seeking different community dynamics and content experiences.

Despite these challenges, X continues its rebranding efforts and pursuit of Musk's "everything app" vision, aiming to integrate content, transactions, payments, and communication into a single platform. The website underwent a redesign in December 2024, removing all remaining Twitter branding, as the company pushes forward with its ambitious, albeit controversial, transformation.