There have been recent reports disclosing information from Fidelity, a fund management company and one of the investors in X Holdings, the parent company of the social media platform X (formerly known as Twitter). Currently, Elon Musk is the primary owner of X Holdings. Fidelity has reduced the value of its investment in X Holdings by 71.5% from its initial investment.
Fidelity invested $19.2 million in shares of X Holdings since October 2022. Previously, in October of this year, the fund reported a 65% decrease in the estimated value of X. The latest numbers from November 2023 show a further decrease of 71.5% from the cost price. It is important to note that the significant decrease in value did not solely come from one side of the investors, as previous reports indicated that X itself assessed its business value and experienced a similarly steep decline.
X is currently facing challenges as major advertising brands have indefinitely withdrawn their advertisements, impacting its revenue in 2023 and potentially beyond. To address this issue, X aims to focus on attracting small to medium-sized advertisers.
TLDR: Fidelity, an investor in X Holdings, has reduced its investment value by 71.5%. X has faced recent challenges with large advertising brands pulling their ads indefinitely, affecting revenue. X plans to focus on attracting small to medium-sized advertisers. (Words: 207)
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