Fidelity cut the value of its Twitter stake by 56%

Fidelity’s rethinking of Twitter’s financial policy is tied to the social network’s woes, most of which are the result of chaotic management decisions, with the exit of advertisers from the network a major this series, writes TechCrunch.

As of November, blue chip fund manager Fidelity’s Twitter stake was valued at around $8.63 million, according to Axios. In October, this share was $19.66 million.

Analysts say macroeconomic trends are partly to blame. In July, Stripe’s internal valuation was down 28%, Instacart reported a 75% drop this week.

And yet, internal politics after Musk’s acquisition of Twitter clearly didn’t help either.

The network has become less technically stable of late, with outages on Wednesday after Musk made “significant” changes to the back-end server architecture.

This comes after Twitter dissolved the group responsible for content moderation and human rights.

A separate wave of discontent followed after the blockade, and then the swift restoration of accounts belonging to well-known journalists.

On the other hand, business analysts at Axios note that Fidelity bases its policy on public figures from the market, and the company may simply not have inside information on Twitter’s financial performance.

However, media reports warn: Twitter definitely faces significant losses as the company nears interest payments on a billion-dollar debt and revenue is falling.

In a November report, Media Matters for America estimated that half of Twitter’s top 100 advertisers who spent nearly $750 million on ads in 2022 no longer host commercial content on the site. The billionaire tried to persuade some of them to return in personal conversations.

Twitter is actively pushing Twitter Blue to become a key revenue generator, but industry data suggests growth has been very slow so far.

The New York Times recently reported that Twitter stopped paying rent on several of its offices, including its San Francisco headquarters.

According to the publication, Musk tried to save about $500 million in non-labor costs. In recent weeks, he’s shut down the data center and even launched an office supply auction.

According to the newspaper, some Twitter employees bring their own toilet paper to work after the company cut cleaning costs.

As a result, after netizens voted Musk out of his leadership position, the billionaire began searching for a new CEO.