Behind Musk’s X Turnaround: Pick-and-Choose Financials
- Heavily adjusted figures, advertising rebound boost outlook
- Leverage ratio remains a burdensome nine times adjusted profit
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Even as Elon Musk’s X Holdings Corp. basks in a valuation facelift, the social-media platform remains mired in debt and its improved fortunes owe much to heavily adjusted financials and investors’ fear of missing out.
The company is talking to investors about a fresh equity fundraising that would catapult it back to the $44 billion valuation it had in 2022 when Musk purchased the platform then called Twitter, Bloomberg reported on Wednesday. Enthusiasm around X, which allowed its lenders to easily find buyers for more than $11 billion of its debt in a matter of weeks recently, marks a sharp turnaround from how Wall Street viewed the company not long ago.