Before Musk's Outburst At Twitter Advertisers, Fidelity Had Taken A Swipe At Valuation
Portfolio Pulse from Chris Katje
Fidelity Investments, which holds a stake in Twitter through its Fidelity Blue Chip Growth Fund (FBGRX), has marked down the valuation of its Twitter investment to $6,267,608, a 68.1% discount from Elon Musk's purchase price. This valuation represents about 0.01% of the fund's assets. The markdown reflects challenges Twitter faces, including advertising issues after Musk's controversial interaction with an antisemitic post. Musk's comments to advertisers could exacerbate the situation, potentially impacting Twitter's cash flow and profitability. Tesla (TSLA), another Musk-related asset, is the thirteenth largest position in the fund.
December 04, 2023 | 8:13 pm
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Fidelity Blue Chip Growth Fund has significantly reduced the valuation of its Twitter stake, which may affect the fund's performance, especially if Twitter's financial struggles continue.
The markdown of Twitter's valuation by Fidelity indicates a negative outlook on Twitter's future performance, which could lead to a decrease in FBGRX's NAV if Twitter's challenges persist.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla's stock may face short-term pressure due to Musk's involvement with Twitter's current controversies and his comments to advertisers, which could affect investor sentiment.
Musk's actions and comments regarding Twitter could indirectly impact Tesla's stock as investor sentiment around Musk's leadership and focus may be questioned.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60