Investor: X/Twitter has regained value even before the US election
Since the takeover of Twitter, one investor has booked discounts on his shares. This changed for the first time in October, writes a US magazine.
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For the first time since Elon Musk's takeover of the short messaging service, a major investor in X (formerly Twitter), the financial group Fidelity, has valued its own shares slightly higher. The US magazine Axios reports that Fidelity now considers the value of X to be almost 33 percent higher than previously –, which would be a good 12.3 billion US dollars. As recently as the summer, Fidelity put the total value of X at just 9.4 billion US dollars.
X worth 12.3 billion US dollars again
Even with the increase in the estimate of the value of X at the end of October, a loss of almost 72 percent compared to the purchase price in fall 2022 is assumed, writes Axios. At that time, Elon Musk paid 44 billion US dollars, a large part of which came from external investors. Since Musk subsequently delisted the short message service from the stock exchange, there is no reliable way to determine the total value of the company. For months, Fidelity's estimates have been the only ones that allow a look behind the scenes. Accordingly, all investors are likely to assume that they have lost more than two thirds of their investment.
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According to the report, the reason for the first increase in the value of Fidelity's shares in X is probably not developments at the short message service itself, but "most likely" its AI technology xAI. Billions in capital were raised for this in October. It is therefore also unclear what impact Donald Trump's victory in the US presidential election has had on the value of X. Elon Musk was a staunch supporter and X temporarily experienced a noticeable increase in activity. Subsequently, however, there was probably one of the most drastic waves of migration from X, from which its competitor Bluesky benefited immensely.
(mho)
