Fidelity fund boosts stake in Musk's X Holdings by 32% in October

Fidelity Investments' Blue Chip Growth Fund has increased the valuation of its equity stake in X Holdings Corp., the parent company of the social network, by over 32% for the month of October.

This marks the most significant monthly increase since the fund's initial investment in late 2022. The stake, which was valued at approximately $4.19 million in September, rose to $5.53 million by the end of October.

The original investment made by the Blue Chip Growth Fund in X Holdings was around $19.7 million back in October 2022. However, since Elon Musk's acquisition of the company at a purchase price of $44 billion in the same month, the fund has reduced the overall valuation of X by nearly 72%.

The reasons behind the October increase in the value of Fidelity's stake in X Holdings are not immediately clear. Since Musk's takeover, X has faced challenges in maintaining its advertiser base. Additionally, the revised valuation occurred prior to the recent US presidential election, an event that has not been factored into the reported figures.

Post-election, Elon Musk has assumed a more prominent role as an adviser to President Donald Trump, even taking on an informal position aimed at reducing federal expenditures. This development comes as several of X's competitors, such as Bluesky and Meta Platforms Inc (NASDAQ:META ).'s Threads, have reportedly experienced user growth following the election results, with some users migrating from X to these rival platforms.

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Source: Investing.com