The news confirms the own impressions of Elon Musk, who recently stated that the company, now called X Holdings, is worth less than half of what he paid for it.
Fidelity was among the group of outside co-investors that helped Elon Musk finance the acquisition of Twitter and has since reduced the company’s value twice, to 56% after the first month it was owned by Musk, for example.
According to Bloomberg, advertising revenue decreased by 50% during March. And it should be noted that Twitter has historically earned more than 85% of its annual revenue from advertising. And, with the latest Fidelity downgrade, he estimates that Twitter’s value is close to $15 billion, that is, 33% of what it was worth in October 2022.
Fidelity now has a $6.5 billion stake in X Holdings, according to a monthly report with data up to April 2023.
Elon Musk tried to recoup revenue by selling Twitter Blue subscriptions, but as of March 2023, less than 1% of the social network’s monthly users had signed up.
According to the Bloomberg Billionaires Index, Fidelity’s latest valuation downgrade implies an $850 million loss in Elon Musk’s fortune, which amounts to $187 billion. Nonetheless, the tycoon’s wealth has grown by $48 billion this year, due to a 63% rise in Tesla shares.