Fidelity’s Stake in Elon Musk’s X Plummets by 72%

Key Details:

📍 Fidelity's investment in X, formerly Twitter, marked down by 72% since Musk's takeover.

📍 November update shows a 19% cut in value from September, amidst advertising struggles and $13 billion debt.

📍 Uncertainty over Fidelity's current stake size and valuation methodology.

📍 Fidelity's report implies a 72% decrease in X’s overall company value.

📍 X under Musk: Dramatic changes and advertiser retreat impacting revenue.

📍 X’s projected 2023 ad sales estimated at $2.5 billion, significantly below previous levels.

📍 Musk's controversial comments and corporate advertiser pullback add to the turmoil.

Context/Background:

Since Musk's acquisition, X has undergone significant changes and challenges, leading to a substantial decrease in its valuation and impacting investor confidence.

Why This Matters:

👉 The markdown in Fidelity's stake reflects broader concerns about X's financial health and ability to retain advertisers under Musk’s leadership.

👉 The decline in X's valuation underlines the potential risks and volatility associated with high-profile acquisitions and leadership changes.