Independent essays and ideasAboutContactDeutsch
Tech

Fidelity cuts value of X stake, implying 73% decline in former Twitter since Elon Musk’s takeover

Fidelity helped Elon Musk with his Twitter takeover, earning a stake in X that's become increasingly less valuable.

Elon Musk.

Fidelity’s Blue Chip Growth Fund cut the value of its position in X by 5.7% in February, implying a 73% decline in the former Twitter Inc. since Elon Musk bought the social-media company.

Fidelity, which gained a stake in X by helping Musk complete his $44 billion purchase in October 2022, valued the position at $5.28 million as of Feb. 29, according to a report posted Saturday listing the fund’s holdings. A month earlier, the value was $5.6 million.

Read more: Banks Stuck With X Debt Held Refinancing Talks With Elon Musk

The overall value of the Blue Chip Growth Fund’s X stake has fallen 73% since Musk’s purchase, suggesting a similar drop in the value of the company because the fund hasn’t disclosed any change in its position in X.

X has been trying to lure back advertisers since Musk’s chaotic takeover. Last year, ad sales were estimated to be roughly $2.5 billion, falling short of the company’s $3 billion target, Bloomberg reported.

Fidelity and X didn’t immediately return emails seeking comment sent outside regular business hours.