Elon Musk does the best of Elon Musk, attracting attention.
Indeed, the man who has helped to persuade Tesla (TSLA) that perhaps the most popular sectarian stock ever emerging in his area as CEO has taken on a new target. In this case, you put things on the platform that he often uses to discuss Tesla (good or bad): Twitter (TWTR).
In a bold move, a leading Tesla man acquired 73,486,938 shares of Musk's largest communications platform company with the latest 13G fulfillment, just over 9% of the company's outstanding shares. The huge investment makes the Brash CEO the largest shareholder in the firm.
Suitable for the founder of SpaceX, TWTR shares have risen sharply since disclosure. Since closing Friday, stocks have risen almost 30%.
The question that remains for shocked shareholders in this sudden circle is simple. Is Elon Musk's investment and engagement worth the reward?
Big Changes From the Board?
Of course, the main reason for jumping quickly into the cell is to expect that Musk, who is often angry at the protection of free speech on the platform, will push for change. If we look at his work in the area in question, this is likely to happen soon.
The idea is that some important changes, both in terms of simple tasks such as editing button and strong protection of user exposure, will promote strong user growth and retention. Indeed, some commentators see this account as plausible.
"We believe that joining Musk on Twitter will lead to a number of initiatives that could include the company's near-term and long-term opportunities outside the gates of a company that is still struggling in the arms race on social media," said Wedbush analyst Dan Ives. note just after the announcement. "It's time to pull out the popcorn and watch the progress of the coming months with Musk on the Board."
This hope, however, is not a coincidence.
In fact, many Wall Street analysts have endorsed Twitter stock neutrality as its recent increase equates to the future.
"While we are still thrilled and amazed at the prospect of Elon Musk playing a key role in Twitter's growth, we believe that the immediate risk / reward is well balanced at current levels,"
As a result, he reduced the stock to "Neutral" from "Buy."
The situation in the US should not be significantly different and the closure of Twitter in Russia does not help either. Aside from these storms, there is the question of whether the changes on Twitter are most applauded among new users, or existing Musk fans who are actively working on the platform.
