Here's What Ark Funds Thinks Of Elon Musk's Twitter Purchase: Will It Buy Shares Again?

Zinger Key Points
  • Ark Invest is a big backer in all things Elon Musk.
  • An analyst for the ETF company shares thoughts on Musk's renewed purchase interest in Twitter.
Here's What Ark Funds Thinks Of Elon Musk's Twitter Purchase: Will It Buy Shares Again?

Elon Musk submitted a new proposal to acquire social media platform Twitter Inc TWTR. An analyst at Ark Invest weighed in with his thoughts on the news.

What Happened: Musk, the CEO of Tesla Inc TSLA, announced a new proposal to acquire Twitter for $54.20 per share, in line with a previous acquisition attempt that he walked away from.

“Status quo ante, if @elonmusk says the ‘wrong thing’ and gets de-platformed that substantially degrades his ability to synchronize and communicate with customers, stakeholders and employees (for Tesla, SpaceX et al),” Ark Invest Chief Futurist Brett Winton said.

Winton said the acquisition by Musk could lower that risk.

“Further, that the platform can be capriciously and arbitrarily denied to *anyone* both weakens the business-case for the platform and invests the platform operator with more power than is logical.”

Related Link: Cathie Wood's Successor? This Guy May Just Be The Next To Lead Ark Invest — Here's How He Thinks

Why It’s Important: Ark Invest is one of the largest investors in Tesla stock. The electric vehicle company is the number one position in the Ark Innovation ETF ARKK and the Ark Next Generation Internet ETF ARKW at 8.75% and 9.21% of assets, respectively. Together, the two funds own more than $880 million in Tesla shares.

Twitter was previously held in the Ark Next Generation Internet ETF and the Ark Fintech Innovation ETF ARKF. Ark Invest sold out of its position in the social media platform around the time Musk announced he was walking away from the acquisition of Twitter.

Ark Invest has backed Musk companies and highlighted the Tesla CEO many times. An investment in Twitter, if the company is acquired by Musk, could show support for the CEO once again. 

The ETF group may wait to buy Twitter shares until the deal is finalized and completed so it doesn’t have to buy and sell shares once again.

Ark Invest recently began buying more Tesla shares and stated it would invest more in high conviction names such as Tesla. 

Musk remains one of the most followed people on Twitter with 107.9 million followers at the time of writing. Musk passed the 100 million follower milestone in June 2022.

TWTR Price Action: Twitter shares are down 0.57% to $51.72 on Wednesday.

 

 

Posted In: Ark FundsARK InvestBrett WintonElon MuskSocial Media Platformssocial media stocksNewsSocial MediaETFsGeneral