Fidelity slashed its Twitter book value by 56% in the first month of Property of Elon Musk, according to a new revelation.
News Movement: Fidelity was among a group of outside investors it helped Musk finance the $44 billion takeover of the social media site through an equity purchase.
- He holds Twitter stock in several of his mutual funds under the name “X Holdings I Inc.”
By the numbers: Fidelity’s Contrafund valued its Twitter shares at $53.47 million on Oct. 31, which was just days after Musk’s deal closed. It then revalued the stock to about $23.46 million as of Nov. 30, a 56% decline.
- Fidelity reported the same Twitter downgrade in other mutual fund disclosures, including for its Blue Chip Growth Fund.
What you should Know: Fidelity is a shareholder in Twitter, but does not necessarily have proprietary knowledge of its business results. Instead, the revaluation may be based, at least in part, on larger declines in technology capital.
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