Elon Musk is likely not having a good start to his 2024. On top of all his other problems which are too many to list here, Fidelity Investments who owns a stake in Twitter has written down that stake by a huge amount:
By the numbers: Fidelity believes that X is worth 71.5% less than at the time of purchase, according to a new disclosure that runs through the end of November 2023 (Fidelity revalues private shares on a one-month lag).
- This includes a 10.7% cut during November, during which time Musk told boycotting X advertisers to “go f**k yourself” during an on-stage interview with the New York Times.
- In terms of publicly traded comps, Meta stock rose 4.9% in November while Snap shares climbed 38.2%.
The big picture: Fidelity began marking down its Twitter shares the first month after Musk’s buyout. It increased the share value or kept it stable for a few months earlier in 2023.
Behind the scenes: Fidelity doesn’t necessarily have much, if any, inside information on X’s financial performance, despite being a shareholder in the privately held business. Other shareholders may value their X stock differently.
So. If we accept that Fidelity doesn’t have inside info on Twitter, they’re likely marking this stake in Twitter down based on the same things that you and I are seeing. Which is Twitter being a train wreck next to a dumpster fire because of Elon Musk’s “leadership” and behaviour. That’s not good for Elon because Fidelity likely invested in Twitter for the same reasons that we all make investments. Which is to make money. At some point it’s going to call Elon onto the carpet to get a path forward from him that will allow it to make money. Or they’re going to do something more drastic like saying that they’re bailing out of investing in Twitter. Either way, Elon has to be concerned. Especially since he has no plan “B” seeing as he told advertisers who are Twitter’s main source of income to do something that is anatomically impossible.
Sucks to be you Elon.
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This entry was posted on January 2, 2024 at 11:22 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed.
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Fidelity Investments Says That Its Stake In Twitter Is Worth 71.5% LESS Than What They Paid For It
Elon Musk is likely not having a good start to his 2024. On top of all his other problems which are too many to list here, Fidelity Investments who owns a stake in Twitter has written down that stake by a huge amount:
By the numbers: Fidelity believes that X is worth 71.5% less than at the time of purchase, according to a new disclosure that runs through the end of November 2023 (Fidelity revalues private shares on a one-month lag).
The big picture: Fidelity began marking down its Twitter shares the first month after Musk’s buyout. It increased the share value or kept it stable for a few months earlier in 2023.
Behind the scenes: Fidelity doesn’t necessarily have much, if any, inside information on X’s financial performance, despite being a shareholder in the privately held business. Other shareholders may value their X stock differently.
So. If we accept that Fidelity doesn’t have inside info on Twitter, they’re likely marking this stake in Twitter down based on the same things that you and I are seeing. Which is Twitter being a train wreck next to a dumpster fire because of Elon Musk’s “leadership” and behaviour. That’s not good for Elon because Fidelity likely invested in Twitter for the same reasons that we all make investments. Which is to make money. At some point it’s going to call Elon onto the carpet to get a path forward from him that will allow it to make money. Or they’re going to do something more drastic like saying that they’re bailing out of investing in Twitter. Either way, Elon has to be concerned. Especially since he has no plan “B” seeing as he told advertisers who are Twitter’s main source of income to do something that is anatomically impossible.
Sucks to be you Elon.
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This entry was posted on January 2, 2024 at 11:22 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.