Elon Musk added 20% to Twitter’s worth in one day. Here are other assets he’s either sparked or sunk with his tweets
Twitter shares soared more than 20% on news that Elon Musk has bought a 9% stake in the company—the latest business entity to see its stock head for lunar orbit after the Tesla CEO has shown an interest.
Musk hasn’t tweeted about the purchase yet. News of the stake came via a filing with the Securities and Exchange Commission (SEC).
But Musk has had plenty to say about Twitter in the past, specifically about whether the company adheres to free speech patterns.
That has led some analysts to suspect he has more ambitious investment plans for Twitter.
“Musk could try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives told CNBC’s Squawk Box. “This eventually could lead to some sort of buyout.”
Twitter, though, is hardly the first company to see a big pop because of Musk. With over 80 million followers and his investment track record (plus the cult of personality he has built), his comments carry weight.
Here’s a look at some of the other financial worlds he has influence with just a few words.
Musk’s biggest investment has seen its stock both rise and fall due to Musk’s comments.
In 2018 it zoomed 11% after he tweeted his was considering taking the company public at $420, noting he had secured funding. (That tweet eventually earned him a lawsuit from the SEC that cost him a $20 million fine and resulted in him stepping down as chairman for three years.)
His words have brought the share price lower even more frequently, though. Last May, for instance, he brought prices down by 10% after tweeting “Tesla stock price is too high, imo.”
And, in 2018, an attempted April Fool’s joke sunk shares by more than 8%.
It’s not a company, of course, but Musk’s passion about this memecoin is well documented. Just a mention can send the crypto soaring, and when he joked about it on Saturday Night Live, it sent prices tumbling 30%.
Musk doesn’t even have to talk specifics about the crypto to make it move. A JPG he posted last February resulted in a 25% jump.
Reddit’s r/wallstreetbets community gets much of the credit for GameStop’s rapid rise, but Musk fanned the flames in a big way on Jan. 26, 2021, tweeting “Gamestonk!” and a link to the subreddit. Shares soared 50%.
Even off-the-cuff comments can drive stocks. On Jan. 26 last year, Musk tweeted “I kinda love Etsy.” Shares immediately soared by almost 9%, before falling back to normal levels.
In October 2021, Musk tweeted he was in talks with airlines about installing his Starlink satellite internet service. There were no announcements of deals or details offered, but rival Gogo saw its shares tumble 5.7%.
Last November, Tesla and Hertz were both seeing shares surge on rumors that the car rental company had signed a massive deal with Tesla. Musk popped that balloon with the comment that “no contract has been signed yet.”
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