Elon Musk's X gets another valuation cut from Fidelity

[LetMyPeopleVote]

At this value, the lenders are now under water in that there is no equity left in Twitter/X. Hopefully, Musk has guaranteed this debt or the lenders will be getting nervous

Link to tweet

https://www.axios.com/2023/12/31/elon-musks-x-fidelity-valuation-cut

Fidelity has again marked down the value of its shares in X Holdings, which the mutual fund giant helped Elon Musk buy for $44 billion when the company was known as Twitter.

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.

[Cha]

1. What Went Wrong?!!

😯 Lol

[WarGamer]

2. In 12/22, Musk said he wouldn't sell/exercise any more stock or options for 18 months...

So it's logical to assume that he will raise some cash in Q3 2024...

X is like a Lemonade stand in Musk's driveway...

The status of X is pretty irrelevant to his finances...

Musk owns 411 million shares of TSLA...

Do the math.

411,000,000 x 248.48 per share.

That's over 102 billion dollars... just from TSLA stock.

His total net worth is over 250 Billion.

[Tickle]

3. Win some lose sum

What's a few 100 billion between friends

[Johonny]

4. If investors pulled money from his other over valued stocks

. . .

[WarGamer]

5. TSLA stock doubled in 2023...

Like the guy or hate him, Institutional investors will certainly retain exposure to TSLA.

[LetMyPeopleVote]

6. Fidelity Investments cut its valuation of Twitter, by another 10.7% in November.

Link to tweet

[LetMyPeopleVote]

7. Elon Musk's X worth 71.5% less than it was when he bought the platform in 2022, Fidelity says

There is now no equity in Twitter/X and the lenders are under water (X/Twitter owes more than it is worth). This will be fun to watch

Link to tweet

https://www.cbsnews.com/news/elon-musks-x-twitter-worth-drops-71-5-percent-fidelity-filing-2023/

X, the social media platform formerly known as Twitter, is now worth an estimated 71.5% less than it was when Elon Musk purchased the platform in Oct. 2022, according to a Fidelity securities filing dated Dec. 30, 2023.

The asset management firm, which owns an equity stake in the company under X Holdings Corp., previously slashed X's valuation to a third of Musk's $44 billion purchase price in May of last year.

The new valuation from Fidelity's Blue Chip Growth Fund, which reported data through Nov. 30, 2023, estimates that its shares of X are worth $5.3 million — down from an estimated $6.3 million in October and far from the $19.66 million valuation of its stake just prior to Musk's takeover.

The many controversies that have plagued the platform since the Tesla CEO's purchase scared off advertisers and resulted in more than half of them halting spending on X less than a month after Musk's acquisition was finalized.

In November, major advertisers including Disney, Apple, and Coca Cola pulled paid advertising off the platform to distance themselves from Musk after his endorsement of an antisemitic post.

[radius777]

8. New Coke problem.

Twitter was a known brand/experience that people liked, for better or worse. The rebranding as X (along with other changes) is just stupid and reminiscent of the New Coke debacle - ie an answer to a question nobody asked.

[LetMyPeopleVote]

9. At the rate Twitter's value is collapsing under Elon, it's on track to be bankrupt before July 😳

Link to tweet