Fidelity has further downgraded the estimated value of its stake in social platform Reddit and chat app Discord and SaaS startup Gupshup, previewing how the asset manager sees the impact of the continued slowdown in the public market on private stocks .
Fidelity Blue Chip Growth Fund valued its holdings in Reddit at $15.4 million as of May 31, according to the fund’s monthly disclosure released Friday. That’s down 7.36% from $16.6 million at the April close and a total of 45.4% since the August 2021 investment.
Fidelity lowered the value of its Discord holdings to $1.7 million, down 13.4% from a month ago and 47% since its initial investment of $3.3 million. (It’s worth noting that the vast majority of Fidelity’s write-down of the value of Reddit and Discord holdings happened primarily last year.)
Reddit, which is currently grappling with a revolt from moderators of some popular subreddits over API cost changes, was valued at $10 billion when the social media giant raised funds in August 2021. Discord raised funds in September 2021 for a $15 billion valuation.
The financial giant also revised the value of its stake in Twitter to $6.86 million, up from $6.55 million from a month earlier, but still down 65% since its original investment. It cut its stake in SaaS startup Gupshup to $10.15 million, down from $11 million at the April close and 38% since the original investment.