Elon Musk recently bought 9.2% of Twitter stock, according to a file on Monday, making him the company's largest shareholder.
Purchase news posted on Twitter shares (TWTR) an increase of 22% on pre-trading. Musk did not disclose that he had paid for the shares, but his stake was worth $ 2.9 billion since trading closed on Friday, and $ 3.5 billion after a spike in early Monday.
Musk's installation did not disclose the intent to purchase any of the company's plans. But he has been very critical of Twitter policies in the past. Last month he said he was thinking "seriously" about building a new social media platform.
"As Twitter operates as a public space, failure to follow the principles of free speech undermines democracy," Musk said on Twitter last month. "What to do?"
Whenever an investor buys 5% or more shares of a company, he or she must disclose the purchase to the Securities and Exchange Commission file. Although less than 10% of the company's stock is considered "doing nothing" in the eyes of Wall Street, it may indicate Musk's attempt to play a significant role in Twitter's operations. That is one of the reasons why some investors are buying stocks and raising prices in early Monday.
"I think he intends to work and force change on Twitter," said Dan Ives, a technical analyst. "This is a picture looking at the Twitter board and management team to start conversations."
