Fidelity’s Blue Chip Fund Cuts Value in X After Musk’s Takeover

Fidelity’s Blue Chip Growth Fund Cuts Value of X by 5.7%

Fidelity’s Blue Chip Growth Fund has made a significant move by cutting the value of its position in X by 5.7% in February. This decision implies a staggering 73% decline in the value of the former Twitter Inc. since Elon Musk acquired the social media company.

In October 2022, Fidelity gained a stake in X by assisting Musk in completing his $44 billion purchase. The fund valued the position at $5.28 million as of February 29, as reported in a document listing the fund’s holdings. In comparison, the value was $5.6 million a month prior, indicating a downward trend in the investment.

The overall value of the Blue Chip Growth Fund’s stake in X has plummeted by 73% since Musk’s acquisition. This decline suggests a similar drop in X’s overall value, as the fund has not disclosed any changes in its position regarding X.

X has been facing challenges in attracting advertisers following Musk’s tumultuous takeover. In the previous year, ad sales were estimated to be around $2.5 billion, falling short of the company’s target of $3 billion. These struggles have contributed to the downward trend in the company’s value.

Efforts to Revive X

  • X has been actively working to regain the trust of advertisers and stabilize its revenue stream after Musk’s controversial acquisition.
  • The company’s ad sales performance in recent years has not met expectations, leading to a reassessment of its advertising strategies and revenue projections.
  • Musk’s takeover of X has sparked concerns among investors and advertisers, impacting the company’s financial performance and market reputation.

Despite efforts to address these challenges, Fidelity and X have not provided immediate comments in response to inquiries sent outside regular business hours.

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Source: Bloomberg

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