According to the monthly disclosure released on Friday, the Fidelity Blue Chip Growth Fund has valued its Reddit holdings at $15.4 million as of May 31. This marks a 7.36% decline from the previous month’s value of $16.6 million, and an overall decrease of 45.4% since its initial investment in August 2021.
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Fidelity has also adjusted the value of its Discord holdings to $1.7 million, reflecting a 13.4% decrease from the previous month and a significant decline of 47% since the initial investment of $3.3 million. (It’s worth noting that the majority of the markdown in the value of Reddit and Discord holdings by Fidelity occurred mainly last year.)
In August 2021, Reddit received funds at a valuation of $10 billion. However, the social media giant is currently facing a revolt from moderators of some popular subreddits due to API cost changes. Similarly, Discord raised funds in September 2021, reaching a valuation of $15 billion.
Fidelity has also made adjustments to the value of its Twitter holdings, which now stand at $6.86 million, up from $6.55 million the previous month.
However, despite this increase, it still represents a 65% decrease from the original investment. Furthermore, Fidelity has reduced its holding in SaaS startup Gupshup to $10.15 million, down from $11 million in April and a 38% decrease since the initial investment.
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These valuation adjustments by Fidelity offer insight into how the ongoing market slowdown is impacting various privately-held companies. It highlights the challenges faced by platforms like Reddit and Discord, as well as the journey of startups like Gupshup.
While these adjustments may reflect a cautious approach, it remains to be seen how the market will evolve and whether these valuations will continue to fluctuate in the future.