Modelling A.I. in Economics

Fidelity's Twitter Bet Sours as Stock Price Continues to Decline

Fidelity Investments, one of the largest asset managers in the world, has marked down the value of its stake in Twitter Inc. for the third time since Elon Musk's $44 billion takeover of the social media platform in October.

In a regulatory filing on Sunday, Fidelity said that the fair value of its Twitter stake was $6.55 million as of April 28, down from $7.8 million as of January 31 and almost $8.63 million at November-end.

The latest markdown comes as Twitter's stock price has continued to decline since Musk's takeover. The stock is currently trading at around $37, well below Musk's offer price of $54.20 per share.

The decline in Twitter's stock price has been driven by a number of factors, including concerns about Musk's ability to finance the deal and his plans for the company. Musk has said that he wants to make Twitter a more open and free platform for speech, but he has also raised concerns about the company's moderation policies.

It is unclear how much longer Fidelity will be able to hold onto its Twitter stake at the current valuation. If the stock price continues to decline, Fidelity may be forced to sell its stake at a loss.

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