Elon Musk’s X gets another valuation cut from Fidelity: Once more, Fidelity has reduced the value of its X Holdings shares, which the mutual fund behemoth assisted Elon Musk in purchasing for $44 billion when the firm was referred to as Twitter.
According to a new disclosure valid through the end of November 2023, Fidelity estimates that the value of X is 71.5% lower than when it was acquired (Fidelity revalues private shares with a one-month lapse).
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This includes a 10.7% decline in November, during which Elon Musk told advertisers who boycotted X to “go f**k yourself” in a New York Times on-stage interview.
Meta stock increased 4.9% in November relative to publicly traded peers, whereas Snap shares increased 38.2%.
Fidelity commenced the process of depreciating its Twitter shares within the first month after Musk’s acquisition. It maintained or increased the value of the shares for several months in early 2023.
As a shareholder in the privately held company X, Fidelity may not have access to substantial, if any, confidential information regarding the company’s financial performance. The value that other shareholders assign to their X stock may vary.
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