In a striking move reminiscent of previous adjustments, Fidelity has once again slashed the valuation of its shares in X Holdings, a company acquired by Elon Musk for a hefty $44 billion when it was still operating under the moniker Twitter. Fidelity, a financial juggernaut, revealed a substantial 71.5% markdown in value as of November 2023, acknowledging a one-month lag in the private share revaluation process.
This reassessment unfolds against the backdrop of a turbulent period for X, marked by a significant 10.7% decrease in November alone. Musk’s highly publicized outburst during an interview with the New York Times, where he urged boycotting X advertisers to “go f**k yourself,” likely played a pivotal role in the downward adjustment. In contrast, publicly traded Meta stock experienced a 4.9% rise, and Snap shares surged by an impressive 38.2% in the same month, raising concerns about X’s performance relative to its competitors.
Fidelity’s initiation of share markdowns shortly after Musk’s acquisition initially hinted at skepticism regarding the true value of X. While the share value experienced fluctuations earlier in 2023, the recent substantial devaluation suggests potential challenges on the horizon. It’s essential to recognize that Fidelity’s valuation might not precisely mirror X’s financial health, given its lack of comprehensive insider information. Other shareholders may hold divergent perspectives on the company’s value.
In a broader context, Elon Musk’s ventures contribute another layer to the intricate landscape of the “Elon Musk industrial complex,” underscoring the complexities and uncertainties surrounding his diverse portfolio of businesses.
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