News that Elon Musk took a 9.2% stake in Twitter Inc (NYSE: NYSE:TWTR) sent shares of the social media platform higher. Could the stake by Musk and a position on the Board of Directors lead to outsized returns for shareholders of Twitter, and how will the performance stack up with other Musk favorites?
What Happened: Tesla Inc (NASDAQ: TSLA) CEO Elon Musk has been accumulating shares of Twitter since Jan. 31, 2022. It was revealed on Monday that Musk now holds a 9.2% stake in the company, making him the largest shareholder.
Along with being a shareholder, Musk was also announced as a new member of the Twitter Board of Directors. Musk has been actively engaging with his more than 80 million Twitter followers to see what they think of new priorities for Twitter like adding an edit button, supporting free speech and more.
With Musk now having a role in the future of Twitter and some thinking this will lead to major changes, Twitter could enjoy strong returns over the next few years after several years of lackluster performance.
Musk has a history of turning companies he runs into strong returns for shareholders.
Benzinga recently polled its Twitter followers to pose a question related to four popular assets tied to Musk.
Related Link: Elon Musk's SpaceX Proposing 10 For 1 Split Of Privately Held Shares: Report
Benzinga Poll: Recently, Benzinga asked its Twitter users, “Which of the following do you think will gain the most over the next five years?”
The possible selections were Twitter shares, Tesla shares, SpaceX or Dogecoin (CRYPTO: DOGE). The current values at the start of the poll were:
- Tesla: $1,058 per share, $1.1 trillion market capitalization
- Twitter: $50.86 per share, $40.6 billion market capitalization
- SpaceX: $100.3 billion valuation based on a 2021 private sale of shares
- Dogecoin: $0.1461 per DOGE, $19.4 billion market capitalization
The results of the poll from Benzinga Twitter users was:
- Tesla: 39.5%
- Dogecoin: 24%
- SpaceX: 22.4%
- Twitter: 14%
Which of the following do you think will gain the most over the next five years? #ElonMuskIt shouldn’t be a huge surprise that Tesla was selected as the winner of the poll. Shares of Tesla are up over 1,500% over the last five years.— Benzinga.crypto (@Benzinga) April 7, 2022
One responder was quick to point out that the potential increase in valuation of SpaceX over the next five years may depend on if the space company finally goes public.
Maybe spacex if it goes public but for now I would say teslaSurprisingly, Twitter got the least amount of votes, which shows that investors see Musk’s other favorites leading the way over the next five years.— Stock Doctor (@stock_doctor) April 7, 2022
Photo: Courtesy of Tesla Owners Club Belgium on Flickr
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