A new chapter has begun for Twitter and its leadership, as Jack Dorsey expressed his enthusiasm in a recent tweet regarding the company’s large purchase of Elon Musk’s Twitter stock. Musk and Agrawal’s fresh approach to the social media platform are eagerly anticipated by the company’s former CEO.
It was institutional investors who dominated Twitter’s top shareholders until Elon Musk, CEO of Tesla (TSLA), revealed his new 9.2% investment in the social media business in April 2022.
When it comes to Twitter’s stock, Musk’s purchase pushed Vanguard Group, the world’s largest mutual fund, to second place. 2
In 2006, Jack Dorsey, Evan Williams, Biz Stone, and Noah Glass co-founded Twitter, a global communications platform. A failed podcasting startup called Odeo was established by Twitter’s founder, Evan Glass. In the aftermath of the enterprise, he formed a partnership with the other three to establish Twitter.
Twitter’s Most Powerful Investors
Elon Musk Is the Ceo of Tesla Motors
A prolific Twitter user, Musk revealed on April 4, 2022, that he owns 73.5 million Twitter shares or 9.2 per cent of the corporation.
1 In the disclosure file, March 14, 2022, was listed as the date of the triggering event. Within 10 days after acquiring a holding of 5% or more in a publicly-traded firm, investors must file an ownership disclosure. 9
On April 5, Twitter appointed Musk to its board, and Musk promised not to acquire more than 14.9 per cent of the company while he was a director and for the first 90 days following his appointment, which was effective immediately. 10 On the same day that he submitted the original Schedule 13G, Musk filed the revised Schedule 13D, showing that he intends to exert some influence over the corporation.
The Vanguard Group of Companies
Twitter’s second-largest shareholder is Vanguard Group. Investment management Vanguard has hundreds of mutual funds, ETFs, and retirement products to choose from around the world. As of January 31, 2022, the corporation has $8.1 trillion in assets under control.
Morgan Stanley Is a Financial Services Company
With 67 million shares, Morgan Stanley (MS), an investment bank and asset manager, has an 8.4 percent stake in Twitter as of year-end 2021.
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14 With $6.5 trillion in customer assets as of the same day, Morgan Stanley acquired E*TRADE and Eaton Vance mutual fund managers.
Twitter Stock Purchase by Jack Dorsey
These questions surfaced after Twitter interim CEO and co-founder Jack Dorsey purchased 31,000 shares for $875,000. at the lowest point in the company’s price. He tweeted, “Investing in Twitter’s future.” Insiders Anthony Noto, Peter Currie and Peter Fenton, all of whom serve on the board, spent between $200,000 and $250,000 each on Friday and Monday, on identical shopping sprees.
Investors appeared to be calmed by the changes. Twitter’s stock surged by $2.46, or 9.1%, to $29.50 on Monday, which was, admittedly, a bullish day for the stock market. Twitter’s Friday closing price of $27.04 was the lowest since the company’s initial public offering in November 2013. About two months after its first public offering, it reached a high of $73.31.
Critics, on the other hand, pointed out that the executive purchases could reflect nothing more than premeditated PR to support public sentiment.. Ross Gerber, CEO of Gerber Kawasaki Wealth Management, called it “window dressing.” Now that the company has lost stockholders half of their wealth, they’re seeking to express their support for it.”
How Much of Twitter Is Actually Owned by Jack Dorsey?
As a point of reference, Jack Dorsey, the co-founder and previous CEO of Twitter, owns just over 2% of the company. Dorsey will step down from the board in May after serving as CEO from November 2021.
Dorsey and Noto Shares
That dive was caused in part by Dorsey and Noto. Dorsey’s return in early summer as a temporary CEO replacement for expelled CEO Dick Costolo came at a time when Twitter’s stock was already in freefall. When Dorsey and Noto spoke openly in late July about Twitter’s inability to attract new users, its difficulty to use, and its need for a turnaround, they further alarmed investors.
Some press sources claim that Dorsey is open to the idea of becoming the permanent CEO of Twitter. Square, the firm he co-founded and currently leads, is on the verge of going public. In the context of his $2.2 billion net worth, Dorsey’s purchase on Monday was insignificant. A total of 379,000 shares of Twitter have been sold by him since November. Meanwhile, Evan Williams, Twitter’s co-founder and board member, sold 372,000 shares last week, bringing his total Twitter sales since May to more than a million shares. Williams had a set timetable for selling Twitter stock, a common practise among executives to avoid being accused of stifling innovation by selling at the wrong time.
Steven Davidoff Solomon, a UC Berkeley law professor, remarked, “It’s unjust to expect everyone to have all their money in one basket. When it comes to the founding of any company, founders are always selling. Whether they’re selling to get out or to diversify is the real question.” On Twitter, Solomon appears to disagree with the market’s pessimism.
According to him, Twitter is one of the few Internet “mega-properties”. “It has monetization challenges, but so does Snapchat,” he continues.
With 22 million shares, Dorsey has about 3% of Twitter. Gerber said that going big and getting 10% of Twitter would make a stronger statement, so that would be the best move. During the secondary offering of Tesla Motors in 2013, CEO Elon Musk spent more than $100 million on the company.
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