Fidelity, an asset manager, has made further reductions to the estimated value of its holdings in Reddit, Discord, and SaaS startup Gupshup.
These adjustments provide insights into how Fidelity perceives the impact of the ongoing slowdown in the public market on privately-held shares.
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According to the monthly disclosure released by Fidelity Blue Chip Growth Fund, its holdings in Reddit were valued at $15.4 million as of May 31.
This represents a decrease of 7.36% from the previous month’s valuation of $16.6 million and a significant decline of 45.4% since its initial investment in August 2021.
Similarly, Fidelity devalued its holding in Discord to $1.7 million, reflecting a decline of 13.4% from the previous month and a substantial decrease of 47% since the initial investment of $3.3 million.
It’s worth noting that the majority of markdowns in the value of Reddit and Discord holdings by Fidelity primarily occurred last year.
In August 2021, Reddit secured funding with a valuation of $10 billion.
However, the platform is currently facing a revolt from moderators of certain popular subreddits due to changes in API costs.
Discord also raised funding in September 2021 at a valuation of $15 billion.
Additionally, Fidelity adjusted the value of its holding in Twitter to $6.86 million, up from $6.55 million the previous month.
Despite this increase, the value is still down by a significant 65% since the original investment.
Furthermore, Fidelity reduced its holding in SaaS startup Gupshup to $10.15 million, down from $11 million at April’s closure.
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This marks a decline of 38% since the original investment. These adjustments by Fidelity indicate the impact of the current market slowdown on privately-held shares.
It further highlights the challenges faced by companies such as Reddit, Discord, Twitter, and Gupshup in maintaining their valuations amidst changing market conditions.
