Hi everyone. Welcome to today’s article. So let’s start today’s video by pointing you toward this particular graph. This is a very interesting chart. It shows the growth rate of various tech companies.
I am deliberately hiding the names of these tech companies. All I want from you is that please comment in the comment box. Which tech company is this?
Why You Should Invest in Tech Stocks in 2022
Chart Analysis of Tech Companies
So this is the chart. This may sound like the X-axis, but it is not. It shows the growth rate of a tech company. The interesting thing about this particular tech company is that it’s the most sought-after tech company right now in terms of investors getting on board. So everyone is going crazy about investing in this company.
You’d naturally ask them, hey, that’s close to a 0% growth rate. So why are investors jumping on it? That’s the exact conversation I’m going to have with you.
Now take a look at this chart. This is the complete picture. It shows the growth rate of various companies like Twitter, Alphabet, Microsoft, Amazon, and Apple. And you’ll see that Twitter is probably the worst-placed company here in terms of growth. And right now it’s getting huge interest from investors like Elon Musk. Why is that the case? And please don’t give up because this is a US stock market investment video. If you keep watching this video you will understand a lot about social media. So let’s start the discussion.
Why is Twitter Stock Price is so High?
First and foremost, let us stress why there is so much interest in Twitter stock right now. So I can prove it through three specific graphics. This is from Elon Musk. He recently made a bid that I would buy Twitter for about $46 billion. And there’s a back-and-forth going on between Elon Musk and Twitter’s board. That’s why Elon Musk really wants to buy Twitter. But Twitter’s board does not want to sell Twitter.
Now comes graphic number two. Take a look at this. It belongs to a businessman from the Middle East. He is a billionaire and also has a significant stake in Twitter. And he’s saying that you know, the quote we got from Elon Musk is pretty low. It does not indicate the true potential of Twitter. So naturally, more investment banks jump into the picture and they are raising prices. They’re saying that you know, Twitter has to be like $60 a share. That’s what we’re going for. And the same investment bank posted a $30 selling price on Twitter. So there’s a huge drama going on in terms of the Twitter stock price. At the moment, drama happens on Twitter every day. there is nothing new. But drama is happening on the share price of Twitter. And it is corporate governance that is a new insight. Now comes the second natural question well, if this company, this tech company is not growing. You showed the chart earlier.
If the company isn’t growing, why are people so crazy about catching up on Twitter? Elon wants to buy Twitter. Others don’t want to sell Twitter. People are discussing prices. Why is this drama going on? What is the true underlying value of Twitter? So let us have a very quick analysis and discussion on that.
So there are three typical value additions that I’m looking for. And I’ll analyze this section from Elon Musk’s point of view. So the first is that Twitter is a political tool. can I prove it? of course. So take a look at this special graphic. So that’s a very powerful statement from Brad Parscale, and I’ll read it with you. it says that in 2016, Trump’s digital media editor Brad Parscale said, Facebook and Twitter were the only reasons we won this thing. Twitter and Facebook for fundraising for Mr. Trump. In a recent interview with CBS News 60 Minutes, Trump himself declared, I feel like I wouldn’t be here if I didn’t have social media. So that’s a big statement. Twitter is certainly one of the most politically intriguing tools out there. For example, you will often see top politicians, top bureaucrats, and top corporate people who want to get into politics, and are super active on Twitter.
Twitter is a political platform?
So Twitter is a political platform, no doubt about it. Yes, people talk about different things. But Twitter’s main goal is to create controversy. This is how the entire platform has been designed. That is the point of the discussion. Now, why is someone like Elon Musk Super interested in this? For this, you have to go back and try to study the history of Elon Musk. The kind of ideas Elon Musk is trying to implement. They go through a lot of regulatory changes. They are surrounded by the Fed and other regulators. So to say, for example, if Elon Musk wants to send passengers to Mars, he’s going to have to look for a lot of regulations. He needs that regulatory support. That part A,
Part B, is that when Trump won the election, the fact is that he didn’t walk away from his businesses. For example, Trump’s sons and daughters were looking after the Trump Empire and Trump was the president. He was watching and controlling the government. So there was a good confluence for their business. So the way I see it as the owner of Twitter, someone like Musk can control a lot of the political narrative in a country like America, and he can even bid for elections. Don’t be surprised about how he presents himself if he gets a chance to contest the next election.
Another reason why someone like Elon Musk might want to own Twitter is very simple, it’s a great marketing tool for his existing businesses. First and foremost here, you need to understand that Elon Musk is a huge influencer when it comes to Twitter. They have about 85 million people. Huge. So here is the complete ranking list. Elon Musk is ranked 8th, far below Justin Bieber. Basically there are a lot of believers. He has pushed Justin Bieber to the top when Elon is in eighth place. And that eighth rank isn’t bad at all.
So Elon Musk has a massive social media following and this allows him to manipulate a set of different investments. Maybe the word manipulation isn’t the idea being used here, but engage me with the idea and I’ll give clarity on my thoughts about Elon Musk’s strategy as a whole.