Breaking News: Twitter Jumps On Musk Purchase

Breaking News: Twitter Jumps On Musk Purchase

Shares in Twitter (TWTR) are soaring pre-market after Tesla (TSLA) CEO Elon Musk took a 9.2% stake in the company.

The news broke minutes ago after a filing with the Securities and Exchange Commission (SEC) early Monday morning disclosed that Musk owned almost 73.5 million shares in the social media company.

As many of you are probably aware, Elon Musk is well known for his Twitter usage — as covered in a recent article by our analysts — and has 80 million followers. The move comes after a series of tweets from Musk in recent weeks, in which he has criticized Twitter for its alleged lack of commitment to free speech and said he was considering starting a rival social media company of his own.

Our Financial Analyst, Michael O’Mahony, has this to say:

"As we know, Twitter is Elon Musk’s playground in which he likes to sew discord, move markets, and profess his inner thoughts to his army of 80 million followers. However, that does not mean he’s happy with the platform, which has gotten him into plenty of hot water in the past. Just a week after asking “Is a new platform needed?”, the news of him accumulating a significant stake in the company is sure to make shockwaves as investors and commentators alike will unravel the potential his presence will have on the business.

Is the near $3 billion purchase — which amazingly only accounts for roughly 1% of Musk’s net worth — a gateway for him to bestow more influence on one of his favorite pastimes? Or is it just another in a long line of seemingly random and chaotic chess moves of a bored megalomaniac who wants to see the manifestation of his own power?

For Twitter shareholders, it probably isn’t a bad thing that one of the world’s most successful creators of value has become invested in the success of the company. However, I’m sure it will come with its fair share of headaches and headlines too. Considering the stock has been stagnant since its IPO in 2013, any shake-up like this should be welcome."

This story is currently developing, so be sure to check back into MyWallSt for further updates.

JamieJamie

Sign up for free to continue reading.