Musk's Twitter Value Plummets to $9.4B Amid Fidelity's Loss

In the United States, Fidelity Investments has significantly reduced the valuation of its stake in Elon Musk's social media platform, X, previously known as Twitter. As of the end of August, Fidelity marked down its investment by 78.7%, bringing the overall valuation of X to approximately $9.4 billion, a stark contrast to the $44 billion Musk paid for the company. This markdown reflects a consistent decline in Fidelity's assessment, as the firm had previously valued its stake at about $5.5 million in July. The drastic reduction raises concerns regarding the platform's long-term viability and growth potential under Musk's leadership. The acquisition of Twitter by Musk was a highly publicized event that aimed to reshape the social media landscape. However, the substantial markdown by Fidelity indicates a troubling trend for the platform, which has faced various challenges since the takeover. Fidelity's recent disclosures reveal that its initial investment of $19.66 million is now worth only $4.18 million, highlighting the financial difficulties the platform is experiencing. This situation has led to questions about the future of X and its ability to recover from the significant loss in value. Fidelity's spokesperson acknowledged the downturn in Twitter's value since Musk's acquisition, suggesting that the current evaluation reflects the ongoing struggles of the platform. The implications of this markdown could affect investor confidence and the strategic direction of X moving forward. Overall, the drastic reduction in valuation underscores the challenges faced by X in the competitive social media market and raises doubts about its sustainability under the current management.