So, there is a big company called Fidelity that bought some parts of Twitter when it was not owned by Elon Musk yet. Now they think Twitter is worth less than what they paid before. This means Elon Musk's plan to buy all of Twitter with his money might cost him more now. Some other people who also want to buy part of Twitter are thinking the same thing, so it could be hard for Elon to get all the pieces he needs without spending too much extra money. Read from source...
1. The title of the article is misleading and sensationalist. It implies that Fidelity has raised its valuation of Twitter, when in fact it has lowered it from Musk's purchase price. This creates a false impression of Twitter's performance and value in the market. A more accurate title would be "Fidelity Lowers Twitter Valuation Below Musk's Purchase Price".
2. The article uses terms like "falling" and "discount" to describe Fidelity's valuation, which have negative connotations and imply a loss of value for Twitter. However, these terms are subjective and do not reflect the actual market conditions or investor sentiment. A more neutral term would be "revalued".
3. The article mentions that Fidelity does not disclose its methodology for valuing private companies, which raises questions about the credibility and validity of its assessment. This could undermine the confidence of readers and investors in Fidelity's analysis.
4. The article cites Axios as a source for its claim that peer social media companies like Meta and Snap have been performing well, without providing any evidence or data to support this assertion. This could be seen as an attempt to justify the decline in Twitter's valuation by comparing it with other platforms that are doing better. However, this comparison may not be fair or relevant, since each platform has its own unique features, strengths, and challenges.
5. The article mentions Musk's offer of a future stake in his AI companies to Twitter shareholders as a possible factor for the rising valuation of Twitter from Fidelity. This seems like an irrational argument, since it does not explain how or why this would increase Twitter's value. Moreover, it implies that Musk is making decisions based on emotion and speculation, rather than sound business strategy.
6. The article mentions other investors like Baron Funds and Ark Invest who have also written down their valuations of Twitter, which could make it harder for Musk to raise capital without discounting the value. This suggests that there is a widespread consensus among investors that Twitter's value has declined, which could affect its market performance and credibility.
7. The article ends with a quote from Wedbush analyst AI Ives, who expects Musk to raise additional capital for X in 2024, while selling some of his Tesla shares. This seems like an emotional behavior, since it shows that the author is sympathetic to Musk's situation and wants him to succeed. However, this does not reflect the reality or challenges that Musk faces as the owner of Twitter, which may require more objective and critical analysis.
1. Buy Twitter stock at its current price, as it is undervalued according to Fidelity's valuation and other factors such as the potential for Musk to integrate AI technology into the platform, which could boost user engagement and revenue growth.
2. Sell Tesla shares if you have any, as they are overvalued and face competition from new EV companies entering the market, such as Rivian and Lucid Motors. Tesla's dominance in the EV sector is shrinking as more players enter the market with innovative products and lower prices.