Fidelity has slashed its estimate of X’s value by 79%, revealing the platform is now worth significantly less than what Elon Musk paid for it. The asset management giant’s Blue Chip Growth Fund now values its stake in X, previously known as Twitter, at roughly $4.19 million, according to recent disclosures. This dramatic reduction comes as Fidelity continues to grapple with the fallout from Musk’s controversial acquisition of the social media platform.
Fidelity’s latest valuation reflects a staggering 78.7% markdown from its previous assessment at the end of July, when the firm had valued its shares in X at approximately $5.5 million. This ongoing decline paints a grim picture of X’s financial health, particularly as the company now holds a total valuation of about $9.4 billion, compared to the original purchase price of $44 billion.
Fidelity initially invested $19.66 million in X, marking a significant commitment that has since dwindled in value. The substantial decrease underscores a broader trend of instability and uncertainty within the platform since Musk took the helm. Issues such as shifts in user engagement, controversies over content moderation, and aggressive cost-cutting measures have all contributed to the sharp decline in X’s perceived worth.
Fidelity’s ongoing markdowns are a stark reminder of the challenges facing Musk’s ambitious vision for the platform. As regulatory pressures mount and competition in the social media landscape intensifies, X’s prospects for recovery remain uncertain. Investors and analysts alike will be watching closely to see how Musk addresses these challenges and whether he can turn the tide for X in the coming months.
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