Fidelity Fund Cuts Stake In Elon Musk's X As Social Media Platform Deals With Growing Challenges

Fidelity's Blue Chip Growth Fund FBGRX reduced its stake in X, formerly known as Twitter, by 5.7% in February, signaling a substantial decline since Elon Musk purchased the social media company.

According to Bloomberg, Fidelity, which obtained a stake in X as part of Musk's $44 billion acquisition in October 2022, valued its position at $5.28 million as of Feb. 29, down from $5.6 million the previous month.

The outlet reported that Fidelity's stake in X has plummeted by 73% since Musk's purchase, indicating a significant decline in the company's value.

Despite this decrease, the fund has not disclosed any changes in its position in X.

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X has been striving to regain advertisers' trust following Musk's tumultuous takeover. Earlier, Bloomberg reported that the company's ad sales fell short of its $3 billion target last year, estimated at around $2.5 billion.

Last year in December, Fidelity increased the value of X Holdings by 11%. 

The Fidelity Blue Chip Growth Fund also possesses shares in prominent private companies such as SpaceX, Fanatics, Stripe, Reddit, Epic Games, Redwood Materials, and others.

Now Read: X Marks The Spot: Elon Musk's Ownership Triggers Dramatic Valuation Plunge

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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