Elon Musk’s acquisition of the social media giant, Twitter Inc., in 2022 made headlines worldwide. It turns out that the investment isn’t shaping up as expected for one major stakeholder: Fidelity’s Blue Chip Growth Fund.
Fidelity’s Investment in Twitter Takes a Hit
The fund, which had aided Musk in his $44 billion acquisition of Twitter, has seen a significant drop in the value of its stake in the company. Reports indicate that the value of its position in Twitter plummeted by 5.7% in February 2022. This decrease hints at a dramatic 73% crash in the company’s worth since Musk’s takeover.
As of February 29, Fidelity put the value of its position at $5.28 million, according to a report released on Saturday. A stark contrast to the previous month’s value of $5.6 million.
Twitter’s Struggles Post Musk’s Takeover
Twitter has been grappling to win back advertisers in the aftermath of Musk’s tumultuous takeover. Last year, the estimated ad sales were around $2.5 billion, missing the company’s target of $3 billion, as reported by Bloomberg.
Neither Fidelity nor Twitter have responded to emails seeking commentary, sent outside regular business hours.
Key Takeaways
- Fidelity’s Blue Chip Growth Fund has suffered a 5.7% drop in the value of its stake in Twitter since February.
- This decrease implies a 73% crash in Twitter’s worth since Musk’s takeover.
- Twitter has been struggling to attract advertisers post-Musk’s chaotic takeover.
- The company’s estimated ad sales for last year were $2.5 billion, trailing their target of $3 billion.
Despite the current challenges, the future of Twitter under Musk’s leadership is still an unfolding story. While these initial figures may seem concerning for investors, it’s important to remember that turnarounds often take time, especially given the turbulent nature of Musk’s acquisition.
Stay tuned to this space for more updates on how the situation develops. As always, it’s crucial for investors to consider all aspects before making any financial decisions.
