First it was on, then it was off; now Elon Musk’s controversial takeover of Twitter is officially going ahead!
The Tesla CEO had initially backed out of an agreed deal during the summer, but Twitter’s threat of legal action and the likelihood of their case being successful convinced Musk to adhere to the previously amicable terms.
This has added to Musk’s already impressive business empire, which now includes Twitter alongside Tesla and Dogecoin. We’ll explore this empire from an investor’s perspective below while asking how you can generate a return over time.
Introducing Tesla, Dogecoin, and Twitter
Twitter is the latest addition to Musk’s portfolio, with the corporation’s most recent market analysis peaking at $41.09 billion.
This makes Twitter the 409th most valuable brand in the world by this metric, even though the structure of Musk’s deal has seen the company delisted from the stock change as it goes through the process of privatisation.
However, Twitter is by no means Musk’s most valuable business, despite its prominent in the digital age and influence within the social sphere. In fact, his pioneering electric car firm Tesla is worth an incredible $609.21 billion, with this value having increased markedly over the last two years.
Currently, you can invest in Tesla shares at a price of $194.42 per unit, although this has decreased dramatically through 2022 (we’ll touch more on this a little later in the piece).
Then there’s Dogecoin, which is a unique cryptocurrency that was initially created as ‘joke’ and de facto parody of cryptocurrencies and their wild volatility. Despite being the world’s first ever ‘meme’ coin, however, it has transcended this status to become widely traded in the crypto ecosystem, earning cult status and a market cap value of $11.5978 billion.
It’s certainly an affordable alternative to invest in crypto tokens like Bitcoin, and it continues to offer value in a wild and incredibly speculative marketplace.
Investing in Musk’s Empire – The Key Considerations
While there’s no direct link between these businesses other than the fact that they’re owned by Musk, the acquisition of Twitter has had a direct impact on the share market valuations of the other brands.
We’ve already about Tesla’s stock price, for example, which has plunged from a year-high of $399.93 per share on January 3rd. This represents a decline of more than 50% in just 11 months, while the stock’s value has depreciated as a result of Musk’s Twitter purchase.
Of course, this decline has also been driven by growing competition in the electric vehicle market and inflation, but there’s no doubt that the market is concerned about Musk’s involvement in Twitter and the immersive nature of the recent takeover.
However, Dogecoin has seen its value increase by some 120% since Musk’s acquisition of Twitter, with this spike occurring within 48 hours of the announcement. Dogecoin even topped the growth of assets like Bitcoin during this time, as the crypto market as a whole experienced a significant boom.
This means that there may be a limited window of opportunity in which to invest in Dogecoin, while you may even want to consider buying into Tesla’s stock in the expectation that it will break above the $300-per-share mark in the future.
We’d also recommend that you speak to an experienced investment management firm before you commit your hard-earned cash.
After all, this will help you to make informed choices and build a balanced portfolio, and one that leverages Musk’s empire as effectively as possible.