Fidelity cuts value of X stake, implying 73% decline in former Twitter since Elon Musk's takeover
Fidelity cuts value of X stake, implying 73% decline in former Twitter since Elon Musk's takeover
Fidelity helped Elon Musk with his Twitter takeover, earning a stake in X that's become increasingly less valuable.
Fidelity’s Blue Chip Growth Fund cut the value of its position in X by 5.7% in February, implying a 73% decline in the former Twitter Inc. since Elon Musk bought the social-media company.
Fidelity, which gained a stake in X by helping Musk complete his $44 billion purchase in October 2022, valued the position at $5.28 million as of Feb. 29, according to a report posted Saturday listing the fund’s holdings. A month earlier, the value was $5.6 million.
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If anyone wants to take a stab at how twitter at 44bil was a blue chip growth stock, I am allll ears because it means I’ve been doing this wrong whole life .
I'm not investor, but as far as I can tell, tech stock prices are based on magic. Look at the IPOs of Reddit and Truth Social.
I didn't mean literal magic. I meant magical thinking.
"Magical thinking" means something slightly different in psychology, having to do with personal agency. For example, the belief that rubbing a lucky charm will cause a stock price go up.
I think I prefer "animal spirits", as per Keynes, which more or less means a desire to act based on irrational optimism. It's closely related to the modern "FOMO" and "YOLO".
it’s so insane to me that he titled his book “*The General Theory of Employment, Interest and Money”. so much confidence in his ideas.
my answer: stock market prices are set at what people "feel" the stock price should be at. and that's all there is to it.
see: gamestop
Not necessarily people. In this case a person. It only takes one sometimes.
or truth social at billions. or any bobble before it burst
"Blue chip growth fund" is just the name of a Fidelity mutual fund. It invests at least 80% into blue chip stocks like Coca Cola and American Express, and the rest into companies it hopes will grow.
The latter category includes X, Lyft, Roblox, lululemon, Rad Power Bikes and many others. Notably, a few investments in that category (like Sonder) are now completely worthless.
'the attention economy' was based on growing the quantity of eyeballs, and assumed advertising would carry everyone.
then advertising money fizzled.
Probably didn't help when musk literally said "go fuck yourself" to advertisers.