Fidelity lowers value of stake in Musk’s X by 5.7% in February

FIDELITY’S Blue Chip Growth Fund cut the value of its position in X by 5.7 per cent in February, implying a 73 per cent decline in the former Twitter since Elon Musk bought the social media company.

Fidelity, which gained a stake in X by helping Musk complete his US$44 billion purchase in October 2022, valued the position at US$5.28 million as at Feb 29, according to a report posted on Saturday (Mar 30) listing the fund’s holdings. A month earlier, the value was US$5.6 million.

The overall value of the Blue Chip Growth Fund’s X stake has fallen 73 per cent since Musk’s purchase, suggesting a similar drop in the value of the company because the fund has not 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 US$2.5 billion, falling short of the company’s US$3 billion target, Bloomberg reported.

Fidelity and X did not immediately return e-mails seeking comment sent outside regular business hours. BLOOMBERG