Does Musk’s takeover spell doom for the social media platform? Is Elon the end of Twitter Inc (NYSE:TWTR) as we know it?
Elon Musk’ Purchase Of Twitter
Scott Sheridan, market expert, and CEO of tastyworks comments on the future of Twitter:
“I have a difficult time believing Elon’s purchase of Twitter can possibly end well. Picture Mr. Rooney, from Ferris Buller’s Day Off, attacked by the dog, kicked by Ferris’ sister, losing his shoe in the mud and the Twitter bird logo droppings on his head for good measure.
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Elon’s success is undeniable. But that success has come from creating amazing technology, whether it was Tesla Inc (NASDAQ:TSLA) or SpaceX, he created and/or improved physical technology. Twitter is a different animal altogether where you’re blending software algorithms with free speech and the guy who’s doing it is arguably the biggest Twitter troll at the moment.
If Elon’s history on Twitter isn’t cause for concern and you believe he will in fact take this seriously, you still can’t get around the potential conflicts he’ll encounter with respect to China and even the U.S. government.
The biggest potential market for Tesla is China. China embraces free speech about as well as Bears fans embrace Aaron Rogers at their dinner table. SpaceX landed a $102M contract from the U.S. Air Force just this year and also receives millions of dollars in U.S. government subsidies.
You don’t have to try too hard to envision a scenario where China exerts pressure on Elon to censor criticism. And any potential special treatment with respect to China could potentially cost SpaceX existing and/or future U.S. government contracts. In fact, it’s entirely possible my Ferris Buller reference is a best-case scenario.”
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