- In February, Fidelity’s Blue Chip Growth Fund reduced the value of its position in X by 5.7%, reflecting a significant decline in the former Twitter Inc. since Elon Musk acquired the social-media company. The fund, which obtained a stake in X by assisting Musk in his $44 billion purchase in October 2022, valued the position at $5.28 million as of Feb. 29, compared to $5.6 million the previous month, according to a report detailing the fund’s holdings.
- The overall value of the Blue Chip Growth Fund’s X stake has plummeted by 73% since Musk’s acquisition, indicating a proportional decrease in the value of the company. This decline underscores the challenges X has faced since Musk’s tumultuous takeover, particularly in regaining advertiser confidence. Bloomberg reported that X fell short of its $3 billion ad sales target last year, with estimated sales reaching only around $2.5 billion. In response to Musk’s leadership, X has been actively working to entice advertisers back to its platform.
Why it matters
Despite these efforts, the company continues to grapple with the aftermath of Musk’s acquisition, as evidenced by the ongoing struggle to meet revenue targets.
