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.

  • Flying Squid
    32•8 months ago

    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.

        • @[email protected]English
          -9•8 months ago

          “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”.

      • @[email protected]
        2•8 months ago

        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.