Tesla CEO Elon Musk has recently played the power of "pushing the tray".
This time, it was indeed Twitter's disk that was pulled.
On Monday, local time, a stock holding disclosure document provided by Musk showed that as of March 14, he owned nearly 73.5 million shares of Twitter stock, accounting for about 9.2% of the shares, almost four times that of the company's co-founder and former CEO Jack Dorsey, and also surpassed large investment institutions such as Vanguard Group Inc.
Twitter shares exploded 25 percent after the news was announced, and by the close, Twitter was up more than 27 percent. Tesla shares closed up 5.61 percent.
While Musk's Twitter stock has no control (as can be seen in the form of his holding disclosure documents), his Twitter remarks seem to suggest that he will make bigger moves in the future.
On March 25, Musk launched a vote asking whether Twitter "strictly adheres" to the principle of free speech, adding that the result of the vote is important. 70% of users chose "no", that is, they believe that Twitter did not comply with the principle of free speech.
Source: Musk Tweet
After the vote, Musk released two more tweets, declaring: "Twitter as a public platform that does not abide by the principle of free speech fundamentally undermines democracy." "Need a new platform?"
Wedbush analyst Dan Ives told CNBCSquawk Box that Musk could take more aggressive action against Twitter. He believes that this could eventually lead to some form of acquisition.
On March 24, Musk also asked "whether the Twitter algorithm should be open source."
According to the value master network data, although it was urged by Musk to rise by more than 27%, according to the master value line, Twitter's stock price is still in the undervalued range and has not yet recovered from the sharp decline since October last year.
Image source: Value Master Chinese Station
The direct reason for Twitter's stock price slump is that the company's loss situation has not improved.
Compared with Facebook, another major foreign social platform, Meta, Twitter's profitability has not been optimistic. Since Twitter went public in 2014, the company has accumulated a net loss of $2.2 billion (about 13.91 billion yuan) and did not make a profit for the first time until 2018. The Company's latest 2021 annual report shows a loss of $493 million, an operating profit of $273 million, or an adjusted operating margin of 5%, after excluding net expenses of $766 million related to one-time litigation. The average mDAU was 217 million in the fourth quarter, compared to 192 million in the year-ago quarter, compared to 211 million in the previous quarter.
Comparing twitter and Meta's profitability, the source value master Chinese station
In addition, Twitter expects GAAP operating losses in 2022 to be between $225 million and $175 million.
In addition to Twitter's business conditions, well-known public figures want to "start another stove" outside the mainstream platform, is this script a bit familiar?
Former US President Trump also launched TrueSocial after his personal account was blocked, and the app topped the Appstore free download list on February 22.
Today, however, shares of DigitalWorld Acquisition Corp, a special purpose public company (SPAC) to merge with TruthSocial, plunged 13 percent as two of the company's top executives in charge of products and technologies, Josh Adams and Billy Boozer, announced their resignations. At present, the reasons for the resignation of the two are unknown.
DWAC stock price trend, figure source value master Chinese station
The contradiction between Musk and Twitter is also well known. In 2018, Musk tweeted that he was considering taking Tesla private for $420 per share and had secured the required funding. The SEC heard the wind, and the investigation showed that Musk never discussed the specific details of the privatization deal. In the end, the storm ended with Musk and the SEC reaching a settlement. Musk agreed to pay a $20 million fine, stepped down as Tesla's chairman and clarified with lawyers beforehand tweets that might be significant to Tesla shareholders.
Last month, Musk asked a federal judge to cancel the settlement reached with regulators about the 2018 incident, wondering if this was the trigger for Musk's action.
Now, Musk has become the largest shareholder of Twitter, and can only say one thing: things are uncertain.