Fidelity has taken an additional 8% hit to the value of its stake in X, formerly known as Twitter, during September, as revealed in a recent disclosure.
The mutual fund giant was a major contributor to Elon Musk’s $44 billion takeover of the company in October last year. It has marked down its investment in X by 65% in the first eleven months. After marking up the company’s value early in the year, Fidelity announced in May that X, then still called Twitter, was worth only a third of the value it was bought for.
Read: Twitter’s Now Worth Just A Third of What Elon Musk Paid for It
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Fidelity’s method for determining the value of the shares remains undisclosed but observers speculate that that it might be based on public market comparison with companies like Snap, which has also dropped significantly over the last year.
Last week, SimilarWeb data revealed that X’s usage and engagement have been going down since Musk’s takeover. App downloads globally fell by around 38% from October 2022 to September 2023, and global monthly active users fell by 14.8%.
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