Fidelity says Twitter/X worth over 70 percent less than what Musk bought it for

Twitter/X is worth 70 percent less than when it was purchased by Elon Musk, according to Fidelity.

As noted by Axios, the mutual fund company marked down the value of its shares in X. Fidelity was one of the companies that helped Musk buy Twitter for $44 billion USD (roughly $58.61 billion CAD) in 2022.

Fidelity believes X is worth 71.5 percent less than when it was purchased. The new valuation includes data through the end of November 2023, since Fidelity revalues private shares on a one-month lag. That means the valuation includes a 10.7 percent cut in November as a result of Musk telling boycotting X advertisers to “go fuck yourself.”

While the valuation drop is significant, it’s worth noting that Fidelity doesn’t necessarily have inside information on X’s financial performance, and other shareholders may have different valuations of their stock in the company.

However, we learned back in October 2023 that X’s value had fallen by over 50 percent, based on equity awarded to employees. At the time, Musk believed X could one day reach a $250 billion USD (about $346.9 billion CAD) valuation. Musk described reaching it as a “clear but difficult path,” though that path seems less clear and more difficult as the company’s value continues to plummet.

Source: Axios