Fidelity Increases Valuation of X (Twitter) Shares
Fidelity, the investment giant, has increased the valuation of its shares in X (formerly known as Twitter) for the third consecutive month. The latest valuation increase, which occurred during the month ending on July 31, amounted to 8%. This follows an 11% increase in valuation for the month of June.
Despite these valuation increases, Fidelity is still holding the X shares at a significant discount, with the valuation reflecting a 58% discount. This suggests that Fidelity believes the shares are worth much less than their market value.
Fidelity had played a role in financing Elon Musk’s acquisition of X (Twitter) for $44 billion in October the previous year. In the subsequent months, Fidelity had either marked down the stock’s value or kept it flat in terms of valuation.
It’s important to note that Fidelity’s valuation approach for private company shares doesn’t necessarily involve having insider information about the company’s financial status. The valuation adjustments are made on a lagging monthly basis, and Fidelity doesn’t disclose the specific calculations behind these adjustments. Other holders of X shares may value the company differently.
Comparatively, in terms of publicly traded companies in a similar space, Meta’s stock (formerly Facebook) rose by 11% in July, while Snap’s shares dropped by over 4%.