Fidelity Investments has significantly reduced the value of its stake in X, the social media platform formerly known as Twitter, cutting its worth to less than a quarter of Elon Musk’s $44 billion purchase price.
According to Fidelity’s Blue Chip Growth Fund disclosures, the asset manager marked down its investment in X by 78.7% as of the end of August, bringing its valuation to around $9.4 billion.
Fidelity initially invested $19.66 million in X to assist Musk in acquiring the platform, but the value of its holdings has since been repeatedly cut.
The fund’s latest report shows that Fidelity now values its stake in X at $4.18 million, down from $5.5 million in July, following previous markdowns.
This drop continues a pattern of devaluation as X faces challenges in its efforts to generate revenue and maintain its user base amid Musk’s ownership.
The financial assessment from Fidelity reflects growing concerns surrounding X’s ability to recover from its current financial trajectory, following Musk’s extensive rebranding and operational changes.
