OEXN reports: After two weeks of "tug-of-war", Twitter was finally pocketed by Musk.
OEXN analysts said: "As a big red on Twitter, Musk's stake in the platform does not seem to be easy to understand, and his every move on social media can also cause a "tsunami" reaction. The most impressive thing is his agitation for the Canadian digital currency last year, which had previously increased Dogecoin by more than 500% in a month, and he changed his Twitter profile to say that Bitcoin rose by 20% on the same day. And in 2018, Musk said that Tesla was "privatized", and as soon as the news came out, Tesla's stock price also rose sharply. ”
According to Twitter's 2021 financial report, the company's annual revenue is about $5 billion, and Musk spent $44 billion to buy Twitter, and it takes nearly 10 years to earn back the cost, so what is Musk tu?
Wall Street analysts said in an interview with OEXN that if Musk buys Twitter to make money, it is obviously not cost-effective, and perhaps a glimpse of it can be seen from Musk's speech.
Musk, who is known to be a free-speech advocate, has said that Twitter will also continue to be a platform where users can post different opinions, and will also make Twitter's algorithms public to make it more transparent. Analysts on Wall Street pointed out that "the point is that in the second half of the code, the code is publicly understood by a small number, and almost no one wants to study it, but this code may be of great significance to Musk." Nowadays, Tesla as a smart driving electric car, coupled with the social software Twitter campaign, the interaction function with users can be improved in an instant. ”
However, Wall Street analysts said in an interview with OEXN: With The acquisition of Musk, it may increase advertising revenue like YouTube, Snap, Meta, etc., he explained that like the outspoken Musk believes that freedom of speech is very important, which may mean that there will be less review, and 85% of Twitter's revenue is from source brand advertising, because the brand side does not want to have misinformation or other speech and other issues, so it is considering the issue of brand safety. They may shift their budgets to other channels.