Fidelity has again marked down its stake in Elon Musk’s social media platform, formerly known as Twitter though now called X, which the money manager helped him purchase for $44 billion.
Fidelity Blue Chip Growth Fund had valued its stake at nearly $20 million in October 2022, when Musk bought what is now known as X Holdings. But according to a November filing released on Dec. 30 and first reported by Axios, the stake’s value is now listed at $5,599,168.
That means Fidelity now believes its X Holdings stake is worth 71.5% less than when it was purchased. The financial company had made previous cuts to that valuation, more recently by 65% in October, according to Axios.
X Holdings has been under pressure as Musk has lost major advertisers on the platform, such as IBM Corp.
IBM,
Walt Disney Co.
DIS,
and Apple Inc.
AAPL,
over inflammatory comments by him at times and worries over growing extremist content on X.
At the New York Times’ DealBook summit late last year, Musk accused advertisers of “blackmail” and said they were “going to kill” X, as he repeatedly told those boycotting his platform to “go f—” themselves.
