Shares of Twitter (TWTR) surged more than 25% in premarket trading on Monday after the media released data from the SEC that Tesla CEO Elon Musk bought a large stake in it. The news could help boost Twitter shares ahead of the quarterly report.
Shares of Twitter (TWTR), down 38.8% over the past year but rebounding 17.4% over the past month, jumped 25.8% in premarket Monday.
The stock spike was likely fueled by a large stock purchase by Tesla (TSLA) CEO Elon Musk, who is known for being active on Twitter.
Elon Musk buys 9.2% stake in Twitter
Musk owns 73,486,938 shares of Twitter, a 9.2% passive stake in the company, according to the 13G filing by the Securities and Exchange Commission (SEC) released on Monday. The stake is valued at $2.89 billion, based on Friday's Twitter closing price of $39.31.
Musk has over 80 million followers on Twitter and has previously said he is thinking about creating his own social network. networks. Musk's purchase of dogecoin generated demand for it among investors, which may partly be repeated with Twitter shares.
Twitter's revenue has grown quarter-on-quarter over the past year, and market analysts say the company still has plenty of room to monetize and grow. Quarterly earnings and earnings statistics on the Twitter Reports page.
Twitter founder Jack Dorsey stepped down as CEO last November in a sudden move without the kind of advance notice that typically is given with this type of leadership change. He was succeeded by Parag Agrawal, who had been chief technology officer.
Musk had expressed support for Dorsey in the past when he was facing criticism from some shareholders. And when Agrawal was first named Twitter CEO, someone else tweeted the fact that Google, Microsoft, Adobe, IBM, Palo Alto Networks and Twitter are all run by executives who grew up in India, Musk replied with his own tweet: "USA benefits greatly from Indian talent!"
Meanwhile, Twitter's Q4 report released on Feb. 10 didn't push the stock much higher as, like its Q1 2022 guidance, it came in slightly below the Wall Street average.
The number of monetizable daily active users (mDAUs) of Twitter in Q4 increased by 13% (y-o-y) to 217 million vs. 218.6 million predicted by analysts.
A number of analysts have lowered their price targets for Twitter shares, while maintaining their Hold-Outperform ratings.
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Market analysts expect Twitter to better monetize in the future, through digital advertising tools, subscription services, and the results of the company's NFT efforts.
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