What Elon Musk’s 9.2% Stake In Twitter Means For The Company

Elon Musk, an avid tweeter with more than 80 million followers, bought 9.2% of Twitter. The stock has since been on the up and up. Now, investors are jumping on the bandwagon—but doing so might not be the best move to make.

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Valued at a cool $2.98 billion at Friday’s closing price, Musk’s73,486,938 shares make him the company’s biggest shareholder, according to CNBC. That’s a mere fraction of his $288 billion fortune as the world’s richest man.

Musk has recently criticized Twitter for “failing to adhere to free speech principles,” adding that he was entertaining the idea of building his own social media platform. But, on Tuesday, Twitter’s CEO, Parag Agrawal, welcomed Musk to the board.

“He’s both a passionate believer and intense critic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term,” Agrawal tweeted.

Twitter co-founder and former CEO, Jack Dorsey, also tweeted: “I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it. Parag and Elon both lead with their hearts, and they will be an incredible team.”

Since the founder, CEO and chief engineer at SpaceX, CEO of Tesla and founder of The Boring Company made his move to join Twitter, the stock has soared. The stock spiked 27% on Monday alone, according to CNBC. And the news of him joining ticked it up further by about 8% on Tuesday morning.

Now, investors are watching and waiting to see what happens next for the company. Industry analysts are skeptical about Musk’s intentions in purchasing so many shares of the company—especially following all of the criticism and talk about paving his own path. Some suggest that he may start advocating for changes at Twitter, while others suggest that he could have made the move as a future acquisition strategy.

Either way, his involvement has shaken up the stock. And only time will tell how any potential changes he initiates move the markets more. And, sure, had you invested years ago in the company, your shares would have majorly increased in value. But trying to predict the markets is risky—as is stock picking.

At Q.ai, we always advise against attempting to time the markets—deciphering which stocks you think are going to perform well and which ones you think are going to sink soon.

Instead, we advocate for diversifying with low risk long-term investments that maintain some semblance of consistency over time. So long as you hold onto it for the long haul, you have a better shot at success than you would picking single stocks.

Q.ai offers a number of AI-powered strategies, which we call Investment Kits, to help you—including an Emerging Tech Kit to get in on all of the innovation happening in the tech space. Companies like Musk’s Tesla has been often found in its weekly allocation of stocks and ETFs. So whatever new platforms come into play to revolutionize the industry, our library of Kits can help stay on top of it all.

Download Q.ai for iOS for more investing content and access to over a dozen AI-powered investment strategies. Start with just $100 and never pay fees or commissions.