Mutual-fund group Fidelity Investments, one of the most high-profile early-stage tech investors (and asset managers), has written down the value of its holding in Snapchat by 25%, raising questions about the valuations of privately-held tech companies.
According to data from Morningstar, Fidelity, which had valued each Snapchat share it owned at $30.72 back in June, believed that the value of each share had dropped to $22.91 by the end of September. Fidelity’s stake in Snapchat was acquired by the group back in May, giving the app a valuation of $16 billion.
It’s not entirely clear why Fidelity decided to write-down the value of its stake in Snapchat, but many analysts believe the revaluation was a reflection of wider market trends. Indeed, a recent...
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