Despite the controversy surrounding its owner, Elon Musk, the social media platform formerly known as Twitter, now called X, is experiencing a rise in value, according to estimates from Fidelity Investments. As one of the largest owners of Twitter stock, Fidelity had initially marked down its holdings after Musk’s acquisition last year. However, recent disclosures reveal that Fidelity has increased its estimated valuation of X for the third consecutive month, indicating a growing stability for the social media company. This suggests that X may be on the right path, especially considering Fidelity’s past conservatism with its estimates. Meanwhile, recent updates indicate that X is showing signs of stability through its ad revenue sharing program and a notable increase in revenue. Elon Musk himself has issued optimistic predictions for X, hinting at the possibility of reaching a $1 trillion market cap. These developments suggest a promising future for X, making it an intriguing investment opportunity.
Fidelity Investments Estimates Rise in Value of Elon Musk’s X
Despite the stream of controversy and negativity directed at its owner, Elon Musk, X, the social media platform formerly known as Twitter, appears to be gaining some footing. This was hinted at by Fidelity Investments’ estimates for the company, which suggest that X’s value is rising. Fidelity Investments is among the largest owners of Twitter stock and it was also among the firms that helped finance Elon Musk’s $44 billion acquisition last year. Following Musk’s takeover, the firm marked down its holdings, valuing its stake in Twitter at $39.60 per share at the end of 2022.
Fidelity Investments’ estimate suggests X’s value is rising
As per recent disclosures, Fidelity had marked up the value of its X/Twitter sales for the third consecutive month. For the month ending on July 31, Fidelity raised its estimated valuation of X by 8%. This followed an 11% increase in the firm’s estimates for X in June 2023, as noted in an Axios report.
Fidelity Investments is a major owner of Twitter stock
Fidelity Investments is among the largest owners of Twitter stock. The firm played a significant role in financing Elon Musk’s acquisition of X last year. Fidelity’s ownership in Twitter has allowed it to closely monitor and analyze the performance of the social media platform.
Fidelity marked down its holdings after Elon Musk’s acquisition
Following Elon Musk’s acquisition of X, Fidelity Investments marked down its holdings in the company. The firm valued its stake in Twitter at $39.60 per share at the end of 2022, a decrease from its previous valuation. This adjustment was likely due to uncertainties surrounding Musk’s leadership and the potential impact on X’s future prospects.
Fidelity raised its estimated valuation of X by 8%
In a positive turn of events, Fidelity Investments has raised its estimated valuation of X by 8% for the month ending on July 31. This upward revision suggests that Fidelity sees potential for growth and improvement in X’s value. The increase in estimated valuation indicates a more optimistic outlook for the social media platform.
Fidelity has been conservative with its estimates on X
Fidelity Investments has been known to be conservative with its estimates on X. In the past, the firm valued its stake in Twitter at $39.60 per share, which was lower compared to estimates from fellow investor Baron Partners. This conservative approach may be attributed to Fidelity’s cautious stance and desire for accurate valuation assessments.
Fellow investor Baron Partners valued Twitter higher than Fidelity
While Fidelity Investments has taken a conservative approach in valuing its stake in Twitter, fellow investor Baron Partners has valued the social media company higher. Baron Partners estimated its shares in Twitter to be worth $70.20 per share, significantly higher than Fidelity’s valuation. These differing valuations highlight the varying perspectives and strategies of different investors.
X is showing signs of stability
Despite the controversies and uncertainties surrounding X, the social media platform is showing signs of stability. Fidelity Investments’ recent estimate suggests that X’s value is rising, indicating a positive trend. If a major investor like Fidelity sees signs of stability, it may inspire confidence in other investors and stakeholders.
X experienced a revenue jump due to its ad revenue sharing program
X experienced a revenue jump, which can be attributed, in part, to its ad revenue sharing program. The company launched this program recently, and it has been successful in increasing revenue. According to mobile app intelligence firm Sensor Tower, X saw a ~25% revenue jump, driven by an influx of signups for X Premium, which is required to be eligible for the ad revenue sharing program. This shows the potential for X to generate revenue through innovative programs.
Elon Musk predicts X could reach a $1 trillion market cap
Elon Musk, the owner of X, has issued optimistic predictions for the social media platform’s future. Musk stated that reaching a $1 trillion market cap is “not out of the question” for X. While this may seem ambitious, it is not unprecedented in the social media industry. Companies like Facebook have achieved similar milestones, indicating the potential for significant growth and value creation in this sector. Musk’s optimism further highlights the potential of X as an influential player in the social media landscape.
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