Fidelity marks down value of Twitter stake by 56%

Fidelity marks down value of Twitter stake by 56%
A view of the Twitter logo at its corporate headquarters in San Francisco, California, U.S. November 18, 2022. REUTERS/Carlos Barria

By Niket Nishant

(Reuters) – Fidelity funds slashed the value of their Twitter stake by 56% in November, according to a monthly disclosure by the investment firm released on Friday, as the social media giant navigates a period of turmoil following Elon Musk’s $44 billion buyout.

Fidelity Blue Chip Growth Fund’s stake in Twitter was valued at nearly $8.63 million as of Nov. 30, compared to $19.66 million at October-end, days after Musk closed the acquisition.

Another of the asset manager’s funds, Fidelity Contrafund, also reported a similar markdown.

The news was first reported by Axios.

Musk’s tenure at Twitter so far has been chaotic amid an exodus of advertisers and heavy layoffs. Fidelity was among more than a dozen investors who backed the billionaire’s deal to acquire Twitter, committing over $316 million.

Technology stocks have also suffered heavy losses this year as the Federal Reserve raised interest rates aggressively to douse inflation, raising odds of a recession.