May 29, 2022

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Twitter Fever on Wall Street - Elon Musk Richest Six Billion Over the Weekend

Twitter Shares Up 27 Percent – Elon Musk Richest 6.8 Billion Over the Weekend

After a bad first quarter, Wall Street got approved start In the second quarter of this year on Friday. On Monday, the opening was more hesitant, and indications were divided.

Near closing time, the major indices rebounded, and when the trading day ended, it looked like this with the three leading indices in New York:

  • The broad S&P 500 index rose 0.81 percent
  • The Dow Jones Industrial Average rose 0.30 percent
  • The Nasdaq Technology Index rose 1.90 percent

At the same time, the price of oil has risen more than four percent since 12:00, and at 22:00 a barrel of Brent Spot North Sea oil is trading at less than $108 a barrel.

The US 10-year government debt rate is 2.38 percent – almost unchanged from Friday night. Thus, the inverted yield curve continues, with two-year government bonds, at about 2.43 percent, higher than 10-year bonds.

Historically, this reversal has proven to be a warning of an impending recession, that is, a decline in GDP for at least two consecutive quarters.

Twitter with instant hold effect

In the US, one stock overshadowed most others on Monday, after Tesla founder Elon Musk made a quick swipe on Twitter. On Friday it became known that he did it It bought 9.2 percent of the stock In the company.

The market is clearly euphoric with the news, and has sent the price up 25 percent from the start. At the time of closing, the share was up 27 percent.

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It appears from the filing with the US Financial Supervisory Authority (SEC) that Musk personally purchased the shares through his own corporation, the Elon Musk Revocable Trust.

The component of 73.5 million shares was valued at NOK 25 billion at closing time on Friday, but when the exchange closed on Monday, the value had jumped to just over NOK 31.8 billion. Thus, Elon Musk became richer by about 6.8 billion kronor over the weekend.

The Twitter stake grabbed a lot of attention on the New York stock exchanges on Monday.

The Twitter stake grabbed a lot of attention on the New York stock exchanges on Monday. (Photo: Andrew Burton/AFP/NTP Scanpix)

A large part of the price increase is probably due to the fact that Musk has a huge fan base globally who follows closely what he does and says, which several times has led to amazing price moves in Tesla stock. Among other things, he has 80 million followers on his Twitter account, where he several times wrote messages that the SEC deemed to contain sensitive information about the exchange.

The eccentric billionaire is himself an active user of the messaging service, and in the past two weeks he has discussed and criticized Twitter’s views on freedom of expression.

Although Musk’s investment has been defined as ineffective, not everyone is convinced that it will remain so.

“We expect this passive ownership situation to be just the beginning of broader conversations with Twitter’s board and management, which could eventually lead to active engagement and a more aggressive ownership role in Twitter,” said Dan Ives, analyst at Wedbush. Worried..that investing in Twitter will steal Musk’s focus away from Tesla, according to Yahoo Finance.

For Tesla’s purposes, we’re seeing this move because Musk is only expanding his sensors, and we’re in no way concerned that Musk is “taking his eyes off the ball” when it comes to Tesla/SpaceX, he added.

Ives has a $1,400 target price on Tesla stock, nearly 30 percent above Monday’s opening price.

At first, Tesla’s share seemed unaffected by the Twitter news, but over the course of the day it rose by more than five percent.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.