Fidelity Cuts X’s Valuation by 79% Since Elon Musk’s Takeover
Key Takeaways
- Fidelity now values its X (formerly Twitter) stake at just $4.19 million
- Represents a 78.7% reduction from Musk’s $44 billion purchase price
- Implies X’s current valuation stands at approximately $9.4 billion
- Latest in series of downward revisions by major investors
The Stark Devaluation
New disclosures from Fidelity’s Blue Chip Growth Fund reveal a dramatic reassessment of X’s worth. The asset manager has marked down its stake to \(4.19 million as of August 2024 - a staggering 78.7% reduction from Elon Musk's October 2022 acquisition price of \)44 billion.
Valuation Timeline
- Initial Investment: Fidelity committed $19.66 million during Musk’s acquisition
- July 2024: Valued at $5.5 million (TechCrunch report)
- August 2024: Further reduced to $4.19 million
What This Means for X’s Overall Worth
Based on Fidelity’s markdown:
- Implied current valuation: ~$9.4 billion
- Represents just 21.3% of Musk’s purchase price
- Suggests significant investor skepticism about platform’s financial trajectory
Context and Implications
This isn’t Fidelity’s first valuation adjustment:
- The firm has progressively reduced its X holdings’ worth throughout 2024
- Reflects broader market concerns about:
- X’s revenue challenges
- Platform controversies
- Competitive pressures in social media
Note: The $44 billion acquisition was financed through a combination of equity and debt. Neither Fidelity nor X provided comments on these latest valuation changes when contacted by TechCrunch.
The Bigger Picture
Fidelity’s assessment joins other institutional investors in signaling:
- Growing caution about X’s financial future
- Potential need for strategic course correction
- Market recalibration of social media valuations post-acquisition boom
This development raises important questions about how other major investors are valuing their X holdings and what it means for the platform’s long-term viability under Musk’s leadership.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: Town Square 2.5 GPM Shower Trim Kit with Rain Showerhead and Lever Handle
Image: Premium product showcase
High-quality town square 2.5 gpm shower trim kit with rain showerhead and lever handle offering outstanding features and dependable results for various applications.
Key Features:
- Professional-grade quality standards
- Easy setup and intuitive use
- Durable construction for long-term value
- Excellent customer support included
🔗 View Product Details & Purchase
🛍️ Featured Product 2: Town Square Single-Handle Diverter Valve Trim
Image: Premium product showcase
Professional-grade town square single-handle diverter valve trim combining innovation, quality, and user-friendly design.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
🛍️ Featured Product 3: Town Square Long Handle Adapter
Image: Premium product showcase
Advanced town square long handle adapter engineered for excellence with proven reliability and outstanding results.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
