Fidelity has cut its valuation of Epic Games shares by 47% in a year, according to fund holdings reports filed with the US Securities and Exchange Commission on 26 October. The asset manager now puts the Fortnite maker’s stock at $368.37 a share, down from $700.58 at the end of August 2025. When Fidelity first invested, in July 2020, it paid $575.
Fidelity holds Epic in several of its funds, and every report TalkEsport checked uses the same price for 31 August 2026. The largest stake we found sits in the Fidelity Growth Company Fund, which owns 51,800 Epic shares valued at $19.08 million. It paid $29.8 million for them. The Fidelity Advisor Equity Growth Fund bought later, in March 2021, at $885 a share, so its holding is now worth 58% less than it cost.
The decline has been steady. The Growth Company K6 Fund valued its Epic shares at $700.58 in its report for August 2025, then at $510.41 in February. Fidelity’s semiannual report put them at $441.44 at the end of May, and the August figure is 28% below February’s.
From $31.5 billion to below the 2020 price
Fidelity’s numbers trace a full round trip. The round it joined in 2020 raised $1.78 billion and valued Epic at $17.3 billion, Bloomberg reported at the time. In April 2021 Epic raised another $1 billion at a $28.7 billion valuation, with Sony putting in $200 million and Fidelity Management & Research again among the investors. A year later Sony and KIRKBI, the Lego family’s holding company, put in $1 billion each at a valuation of $31.5 billion, TechCrunch reported.
Disney’s $1.5 billion investment in February 2024 came at a lower price. Disney didn’t state a valuation, but Reuters, citing The Information, put the implied figure at about $22.5 billion and said Fidelity, T. Rowe Price and BlackRock had recently marked their Epic stakes at roughly the price Disney paid.
Fidelity’s mark is now 36% below what it paid in 2020. The filings don’t give a figure for the whole company, but one can be estimated. Disney paid $600 a share in 2024 in a deal that valued Epic at $22.5 billion, according to Forge, which tracks trades in private company shares. At that share count, Fidelity’s $368.37 mark works out to about $13.8 billion by TalkEsport’s calculation, down from roughly $26.3 billion a year earlier. The estimate assumes Epic hasn’t issued many new shares since then.
Secondary trading points lower still. Forge put Epic’s indicative price at $262.21 on 30 October, 29% below Fidelity’s mark, and values the company at $9.83 billion at that price.
ARK Venture Fund’s annual report, for the year to 31 July, values its 33,515 Epic shares at $13.4 million, or $400 each. ARK bought them in October 2022 for about $455 a share. The report names Epic and Blockdaemon as the holdings that held the fund back, and says “weaker Fortnite engagement and a high-cost base pressured the company’s outlook.”
What went wrong in 2026
Epic’s own statements match that description. On 24 March it cut more than 1,000 jobs, Bloomberg Law reported, leaving it with about 4,000 employees. Chief executive Tim Sweeney told staff that “the downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making.” He added: “Market conditions today are the most extreme we’ve seen since those early days.” The plan also included more than $500 million of savings from contracting, marketing and leaving some open roles unfilled.
It was the second large cut in three years. In September 2023 Epic laid off about 830 people, around 16% of its staff, and Sweeney said then that “for a while now, we’ve been spending way more money than we earn.”
As part of the March cuts, Epic closed three Fortnite modes: Rocket Racing, Ballistic and Festival Battle Stage. Earlier that month it had raised the price of V-Bucks, telling players it was “raising prices to help pay the bills.” The $8.99 pack dropped from 1,000 V-Bucks to 800.
Several of Epic’s long fights have gone its way. Fortnite returned to the US App Store in May 2025 after a court found Apple had broken a 2021 injunction. An appeals court upheld that finding in December, and the US Supreme Court agreed in June to hear Apple’s appeal. Fortnite also came back to Google Play worldwide on 19 March this year.
The Epic Games Store keeps growing. Players spent $1.16 billion on PC games through it in 2025, up 6%, with spending on third-party games up 57% to $400 million, Epic said in February.
Disney remains the biggest open question. A week after the layoffs, tech journalist Alex Heath said on The Town podcast that Disney was considering buying Epic. In early October, Disney executive Dana Walden played that down at a Bloomberg event: “Those are not the conversations we’re having right now. But we have a great partnership and a number of launches coming up over the next two years.”
These numbers are Fidelity’s own estimates. No shares changed hands at $368.37, and because Epic is privately held, there is no market price to compare them with. Fidelity lists each holding as a “Level 3” security, the accounting category for assets valued with inputs that can’t be observed in a market, and the reports don’t say how it arrived at the figure. Funds are still required to put a number on everything they own. Under the SEC’s fair value rule, any holding without a quoted price in an active market has to be valued in good faith, and mutual funds publish those values every quarter. That makes their marks one of the few regular outside views of how a private company is doing, even if they are rough.
The same reports also value Fidelity’s stake in Discord, the chat app many gamers use, which filed confidentially for a US listing in January but was still private at the end of August. Fidelity’s K6 fund puts its Discord Series I shares at $23.51 each, less than half the $55.06 a share it paid in September 2021.
