Jan 29, 2024 - Business

Fidelity marks up the value of Elon Musk's X

Elon Musk holding a glass and smiling.

Elon Musk. Photo: Antonio Masiello/Getty Images

Fidelity marked up the value of its shares in X Holdings by more than 11% during the month of December, according to a new disclosure.

Why it matters: This comes after months of Fidelity markdowns for X, which the mutual fund giant helped Elon Musk buy for $44 billion when it was still known as Twitter.

By the numbers: Fidelity still holds X at around a 68% discount to its per share purchase price in the fall of 2022.

The big picture: We don't ever know what metrics Fidelity uses to revalue shares of private companies, or if it has proprietary access to nonpublic information.

  • One possibility is that it relies on publicly traded comps, most of which rose in December. For example, Snap was up 23% and Meta climbed nearly 9%.
  • Fidelity also might be giving some credence to talk that existing X shareholders could be in line for shares in the new AI company Musk is forming.
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