Elon Musk's Twitter purchase boosted EBITDA margin from 13% to 46%, but revenue fell by half. One side calls it a win on margins; the other argues the $44 billion would have returned more through Neuralink, SpaceX, or Tesla, and that running a social platform distracts from his core businesses.
Let's talk about if Twitter was a good purchase, because did you see the numbers on this? Because everyone's like, oh my God, Twitter's a bad purchase. But since buying X, Elon Musk has improved its EBITDA margin from +13% to 46% while revenue has nearly halved.
Actually, no, from a business standpoint, I think it's always going to be a bad purchase. But the reason I say it's a bad use of his capital, assuming just from a financial standpoint, he could have put that money into projects like Neuralink, which in theory could have a much better return. Yeah. Or SpaceX or Tesla, and he would've had more focus than something else to distract him.
