Click here: The Weekly Beacon – April 29 2022
We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.
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This weeks issue: Twitter, Private Companies, Social Media, Elon Musk, Saudi Investment Fund, Vanguard, Bill Gates, Climate Change, Goldman Sachs, Morgan Stanley, Mark Cuban, Mortgages, Interest Rates, Wage Growth, Equity Investors, Bond Investors, 60/40 Portfolios, Portfolio Failures, Russian Sanctions, Higher Prices, Oil Prices, Russian Gas, Germany, Poland, Russian Ruble, Dip Buying, Facebook, Utility Stocks, Technology Stocks, High Multiple Trading, U.S. Housing CPI, Rent Growth.
It’s official, Elon Musk is the owner of Twitter (pending any major deal collapsing).
The Tesla Founder bought Twitter for $44 Billion at $54.20 a share. Even with the premium Musk paid, Twitter shares have underperformed for over a decade. Musk will have the same issue Twitter management has had since going public: how to monetize all their loyal users. We know one thing, do not count Musk out.
The deal is as follows:
Lots of leverage and Tesla stock used as collateral, hopefully, Tesla share prices do not drop significantly. If they do drop in value, there could be a fire sale due to a forced sale from margin requirements.