By Karan Brar
April 4, 2022
Twitter Stock Soars After Elon Musk Buys a Big Stake. It Might Just Be the Beginning.
Elon Musk takes stake valued at nearly $3.7 billion
Twitter stock soared 30% after Elon Musk purchased a 9.2% stake in the company
Ownership of 9.2% of Twitter’s outstanding shares, enough to make him the largest shareholder
Musk is now the largest outside shareholder with 73,486,938 shares, according to a Securities and Exchange Commission filing released Monday.
In a post from late last month, Musk polled his 80.2 million Twitter followers, saying: "Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?"
Musk's stake in Twitter is considered a passive investment, which means he is a long-term investor that is looking to minimize his buying and selling of shares
Passive investment is a strategy for slowly building wealth by owning stocks rather than frequent trading
Twitter hopes to reach 315 million active users and $7.5 billion in revenue by the end of 2023, substantially higher than its current figures.