SPY -0.80%
BND -1.19%
QQQ -1.08%
DIA -1.03%
VNQ -1.76%
GLD -2.09%
BTC -2.10%
AAPL -1.13%
GOOGL -2.79%
NVDA -2.21%
MSFT -0.45%
META +5.35%
AMZN -2.39%
TSLA -0.17%
UBER -0.92%
GS -2.82%
BAC -0.25%
JPM -0.41%
BRK.A +0.47%
COST -0.16%
XOM +2.35%
BABA -4.65%
WMT -2.38%
SPCX -4.47%
DIS +1.67%
F -3.59%
Live a richer life.
  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Home
Investing
Stocks
Elon Musk at the 2017 Vanity Fair Oscar Party at the Wallis Annenberg Center Kathy Hutchins/Shutterstock

Billionaire Elon Musk takes a huge 'active' stake in Twitter — here's what it means for the social media giant

Advertisement

The reason? Tesla CEO and billionaire investor Elon Musk revealed a huge stake in the company.

Invest smarter with our free newsletter.

By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.

According to an SEC filing released Monday morning, Musk had acquired more than 83 million shares of Twitter, giving him a 9.2% stake.

Let’s quickly dig into the move and examine what it could mean for the company.

Free speech advocate?

The news came as a positive surprise to market participants. But looking back on it now, Musk had been dropping hints about his interest in the social media space.

On Mar. 24, Musk asked Twitter users a simple question: “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”

“The consequences of this poll will be important,” Musk added. “Please vote carefully.”

More than two million Twitter users responded to the poll, with 70.4% voting “no.”

Following the poll results, Musk tweeted, “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”

Musk’s stake makes him the largest shareholder of Twitter. He’s also now on the social media company’s board of directors. In fact, Musk filed a form 13D on Tuesday, indicating that he plans to take an active role in shaping Twitter’s future.

Must Read

A growth story that didn’t impress Wall Street

While Twitter’s stock was far from a shooting star last year, its business wasn’t exactly standing still.

Advertisement

In Q4, the platform’s average monetizable daily active users rose 13% to $217 million. Revenue grew 22% year over year to $1.57 billion for the quarter, mostly driven by a 22% increase in advertising revenue. And while total ad engagements fell 12% year over year, cost per engagement increased 39%.

Still, both the top and bottom lines came in below Wall Street’s expectations.

Will this be a turning point for Twitter?

The company may have now reached an inflection point.

The double-digit pop in Twitter shares on Monday shows that the market is very optimistic about what Musk’s new stake could mean for the company.

The 50-year-old billionaire has an impressive track record of building massively successful businesses. He co-founded digital payments giant PayPal, formed aerospace technologist SpaceX and turned Tesla into the largest carmaker in the world by market cap.

We’ll just have to wait and see how much influence Musk will have on Twitter’s long-term success. He may want to completely shake things up or just provide broad strategic advice.

Either way, Twitter is now a must-watch story stock.

Read More: About 1 in 5 Americans over 50 has zero retirement savings. Here's why it's not too late

More from Moneywise

You May Also Like

Share this:
Jing Pan Investing Reporter

Jing is an investment reporter for Moneywise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

more from Jing Pan
Robert Kiyosaki speaking at a 2024 event.

News • Jul 02

Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’

A collage image of a Space X rocket taking flight and Elon Musk holding up a glass of red wine as if toasting a success.

Investing • Jun 02

Waiting for the SpaceX IPO? These 3 stocks under $50 could skyrocket much, much higher (and you can buy them now)

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.