UPDATE: April 5, 2022
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A filing with the Securities and Exchange Commission showed that Twitter has appointed Elon Musk to its board. He will join the board as a Class II director for two years (until 2024).
According to the filing, Musk can own only up to 14.9% of the company’s outstanding common stock.
Shares of Twitter, Inc. (NYSE: TWTR) were trading 22.1% up in the pre-market session on Monday after a regulatory filing revealed that Elon Musk has acquired a 9.2% stake in the company, a report published by Bloomberg said.
On the basis of Twitter’s closing price on Friday, the stake is worth nearly $2.89 billion and makes Tesla’s (NASDAQ: TSLA) CEO the biggest shareholder in the social media platform.
Last week, Musk said that he would shake up the social media industry.
Commenting on the development, Wedbush analyst Daniel Ives said, “It looks like Elon has his eyes laser set on Twitter,” and the stake could lead to a “more aggressive ownership role.”
Analyst Opinions
Last week, Jefferies (NYSE: JEF) analyst Brent Thill reiterated a Hold rating on the stock with a price target of $40 (1.8% upside potential).
The analyst said Twitter “has seen little innovation and few new ad product launches.”
Overall, the stock has a Hold consensus rating based on eight Buys, 18 Holds and two Sells. TWTR’s average price target of $45.35 implies 15.4% upside potential. Shares have lost 38.8% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Twitter’s performance.
According to the tool, compared to the previous year, Twitter’s website traffic registered a 3.8% decline in global visits in February. Moreover, the website traffic has declined 8.6% year-to-date against the same period last year.
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