The disclosure of Elon Musk’s huge share on Twitter sparked two major days of stock purchases by retail investors.
People bought a combined total of $ 348 million on Twitter shares on Monday and Tuesday.
This week's revelation that billionaire investor Elon Musk has become a major shareholder on Twitter has sparked massive stock purchases by retail investors, according to tracking company Vanda Research.
The stock market platform brought in the largest number of purchases made to the masses on Monday and Tuesday at a combined price of $ 348 million, says the company that monitors VandaTrack tool that monitors American stocks and trading currencies.
"Elon is back again, this time taking Twitter inside - and marketing loves it," Vanda researchers Marco Iachini and Giacomo Pierantoni wrote in a paper Wednesday.
Twitter shares rose 27% on Monday after Musk reported to the Securities and Exchange Commission a share of 9.2% in the company. His acquisition of 73,486,938 shares made him the largest shareholder in Twitter and his holdings cost $ 2.89 billion based on Friday's closing price of $ 39.31 share. Musk, a manager at Tesla, joins the Twitter board until 2024.
"Twitter - which is hated or loved by its users - has left a lot of tech-savvy peers in the past year even though it came back on Monday ... making it a world-class buyer," Vanda said. Investigators noted that Twitter's stock at some point this year had lost 24% compared to the FANG + annual loss index so far by 1%. Twitter's annual decline to date has dropped to about 17%.
Musk on Monday night posted a survey on Twitter asking his nearly 81 million followers that they wanted a edit button. Twitter said Tuesday it has been working on the planning feature since last year and plans to start testing it in the coming months. "No, we did not get the opinion from the poll," wrote Jay Sullivan, head of consumer product on Twitter.
The SEC's updated post on Tuesday shows that Musk has been buying Twitter stocks since January and that is why he reached an agreement to reduce his share of Twitter to 14.9% as long as he serves as a board member and 90 days thereafter.
"Elon Musk has been very critical of the company in the past despite being a difficult user. Being a real person, especially among investors (and crypto), we can easily assume that TWTR will be at high risk of buying / selling in the market. Elon-based communications future ( as Tesla shares), "said Vanda.
Musk on Tuesday wrote on Twitter that he was looking forward to working with Twitter CEO Parag Agrawal and the board to "make great strides on Twitter in the coming months!"
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Courtesy Grizler.com
