Mutual fund company Fidelity has marked down its investment in X holdings — the parent company of X (formerly Twitter) owned by Elon Musk — by 71.5% from the original valuation of shares, according to a new disclosure.
Fidelity spent $19.2 million to acquire a stake in X back in October 2022. The fund manager made a valuation cut of 65% in October 2023.
CEO Linda Yaccarino claimed that the company would turn profitable in 2024.
The biggest challenge for the company is to convince advertisers to spend money on the platform. A lot of prominent advertisers — including Apple, Comcast/NBCUniversal, Disney, Warner Bros. Discovery, IBM, Paramount Global, Lionsgate, and the European Commission —pulled out from the platform after Musk called an antisemitic conspiracy theory the “actual truth”.