A Fidelity Investments mutual fund has increased the valuation of its equity stake in Elon Musk's X by over 32% in October, marking the most significant monthly increase since the fund initially invested in late 2022.
Fidelity’s Blue Chip Growth Fund reported its holding in X Holdings Corp., the parent company of the social media platform, at $5.53 million as of October 31, compared to $4.19 million at the end of September. This valuation comes from the fund’s monthly disclosure and reflects a notable upward adjustment, despite a substantial markdown since the original investment. Fidelity had initially allocated approximately $19.7 million into X in October 2022.
Despite this recent rise, the overall valuation of X has been reduced by nearly 72% since Musk acquired the platform for $44 billion. Fidelity has not disclosed the methodology behind these valuation adjustments, and a company spokesperson declined to provide further clarification.
The reason for October’s valuation uptick remains unclear. Since Musk’s acquisition, X has faced challenges, particularly in retaining advertisers. The valuation adjustment also predates significant political developments, including the U.S. presidential election. Following Donald Trump’s electoral victory, Musk has assumed an informal advisory role to the incoming administration, reportedly focusing on initiatives to reduce federal expenditures.
The political shift has also influenced user behavior across social media platforms. While X continues to grapple with its financial and operational hurdles, rival platforms like Bluesky and Meta’s Threads have seen user migration, benefiting from the broader landscape of change in social media preferences.
