Fidelity Fund Boosts Musk's Stake in X Holdings by 32% in October

Fidelity Investments' Blue Chip Growth Fund increased its stake valuation in X Holdings Corp., the parent company of the social network, by over 32% for October. This represents the fund's most significant monthly increase since its initial investment in late 2022. The stake, valued at approximately $4.19 million in September, rose to $5.53 million by the end of October.

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

The reasons behind the increase in Fidelity's stake valuation in X Holdings during October are not immediately clear. Since Musk's takeover, X has struggled to maintain its advertiser base. Additionally, the revised valuation occurred before the recent U.S. presidential election, and this event has not yet been reflected in reported figures.

In the aftermath of the election, Elon Musk took on a more prominent role as an advisor to President Donald Trump and even assumed an unofficial position aimed at reducing federal spending. This development coincided with reports that some of X's competitors, like Bluesky and Meta Platforms Inc.'s Threads, experienced user growth following the election results, with some users migrating from X to these rival platforms.