Bridger PenningtonFund Launch & Investment Expert

Bullish or Bearish on Twitter?

5 Jun 2023 · 1 min

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Twitter's value has dropped to roughly one-third of what Elon Musk paid for it, with tens of billions in debt and rising interest costs weighing on the deal. An IPO could be Musk's way out, though advertisers remain wary despite improvements to the platform itself.

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Twitter now just 33% of what it was worth when Elon bought it. What's interesting is Elon used a lot of debt for this purchase. We don't know the exact number, but it was in the tens of billions for this purchase, and interest rates have gone up. If he had adjustable rates, which we'll see on that capital stack if he had it, I'm sure he's paying a pretty penny right now to hold and keep Twitter. Now, the thing is though, Elon has a great out. He can just do another IPO for Twitter, and I believe, I mean, Elon has not missed thus far. So if he IPO'd Twitter again, I think people would buy in. He's done a lot to change the platform. I've liked the platform a lot more. Advertisers have been iffy about advertising there just because of Elon running it. But I think overall it's become a better platform. More users cleaned up a lot of stuff. So what do you guys— what's your thoughts down below? Bullish or bearish on Twitter?