Lately, it seems that Twitter stock rises and falls when Elon Musk makes his latest statement. What did he say this time that affected Twitter shares?
According to Twitter CEO Parag Agrawal, top shareholder Elon Musk said he will not be joining the company as a board member.
Shortly after the announcement, Twitter shares fell in premarket trading Monday.
However, this is just the latest Twitter stock change in a series of recent increases and decreases that all tie back to the richest person in the world.
Elon Musk’s influence on Twitter stock
One week ago, Twitter stock soared after the news hit that the Tesla and SpaceX CEO, Elon Musk, bought 73.5 million TWTR shares. In doing so, he acquired more than 9% stake in the platform, making him the largest shareholder of the company.
The social media company’s stock surged by 27% that day and kept climbing. All until Musk changed his mind this morning.
When Parag Agrawal shared the news, he didn’t mention why Musk wouldn’t be joining the board. However, some experts think that now Elon Musk can keep buying as much Twitter stock as he wants to.
If he had joined the board, he wouldn’t be able to acquire more than 14.9% of Twitter’s shares. That’s what the law says.
So, who knows, maybe Musk made the move so he can invest beyond the 14.9% cap and one day he could take over the whole company and rebuild it however he pleases.
The problem with stock market investing
All of this goes to show you why I don’t put my money in the stock market. It’s just way too volatile, man.
Not only is it risky, but when you’re investing in a stock, you’re just buying a piece of paper. Like I always say:
Never trade paper for paper.
You should trade your money for real assets, things that you can go visit and touch. Things like real estate.
Now, if you’re interested in creating wealth investing in real estate but you don’t know where to get started, check out my free REI training. I’ll walk you from the first thing you should do as a newbie in the world of real estate to owning your first cash flowing deal, even if you have no money or got bad credit.
Featured image source: Daniel Oberhaus (2018), CC BY 2.0, via Flickr
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