Elon Musk's X gets another valuation cut from Fidelity
Fidelity has again marked down the value of its shares in X Holdings, which the mutual fund giant helped Elon Musk buy for $44 billion when the company was known as Twitter.
By the numbers: Fidelity believes that X is worth 71.5% less than at the time of purchase, according to a new disclosure that runs through the end of November 2023 (Fidelity revalues private shares on a one-month lag).
- This includes a 10.7% cut during November, during which time Musk told boycotting X advertisers to "go f**k yourself" during an on-stage interview with the New York Times.
- In terms of publicly traded comps, Meta stock rose 4.9% in November while Snap shares climbed 38.2%.
The big picture: Fidelity began marking down its Twitter shares the first month after Musk's buyout. It increased the share value or kept it stable for a few months earlier in 2023.
Behind the scenes: Fidelity doesn't necessarily have much, if any, inside information on X's financial performance, despite being a shareholder in the privately held business. Other shareholders may value their X stock differently.
Go deeper: The Elon Musk industrial complex