Fidelity has again marked down its stake in Elon Musk’s social-media platform — known as Twitter throughout its 17-year history until being suddenly rechristened X by Musk last summer — which the Boston-based money manager helped Musk purchase for $44 billion late in the previous year.
Fidelity Blue Chip Growth Fund had valued its stake at nearly $20 million in October 2022, when Musk bought what is now known as X Holdings. But according to a November filing released on Dec. 30 and first reported by Axios, the stake’s value is now listed at $5,599,168.
That means Fidelity now believes its X Holdings stake is worth 71.5% less than when it was purchased. The financial company had made previous cuts to that valuation, most recently by 65% in October, according to Axios.
X Holdings has been under pressure as Musk has lost major advertisers on the platform, such as IBM Corp.
IBM,
Walt Disney Co.
DIS,
and Apple Inc.
AAPL,
over inflammatory comments by him at times and worries over an increasing prevalence of extremist content and disinformation on X.
At the New York Times’ DealBook summit late last year, Musk accused advertisers of “blackmail” and said they were “going to kill” X, as he repeatedly told would-be advertisers boycotting the platform to “go f—” themselves.
From the archives (November 2023): Elon Musk’s X reportedly in line to lose up to $75 million in ad revenue by year-end amid exodus
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