Shares of Twitter, Inc. (NYSE: TWTR) were trading up 22.1% in Monday’s premarket session after a regulatory filing revealed that Elon Musk had acquired a 9.2% stake in the company, according to a report by Bloomberg noted.
Based on Twitter’s closing price on Friday, the stake is worth nearly $2.89 billion and makes Tesla (NASDAQ: TSLA) CEO the largest shareholder of the social media platform.
Last week, Musk said he was going to shake up the social media industry.
Commenting on the development, Wedbush analyst Daniel Ives said, “It looks like Elon has his eyes set on Twitter”, and the participation could lead to a “more aggressive ownership role”.
Meanwhile, the California-based company has faced pressure from investors to quickly create new products. In response, he set ambitious goals for revenue and user growth.
Analyst Opinion
Last week, Jefferies (NYSE: JEF) analyst Brent Thill reiterated a Hold rating on the stock with a price target of $40 (upside potential of 1.8%).
The analyst said Twitter “saw little innovation and few new ad product launches.”
Overall, the stock has a consensus Hold rating based on eight buys, 18 holds and two sells. TWTR’s average price target of $45.35 implies 15.4% upside potential. Stocks have lost 38.8% over the past year.
Website traffic
TipRanks’ website traffic tool, which uses data from SEMrush Holdings (New York stock market : SEMR), the world’s largest website usage monitoring service, provides insight into Twitter’s performance.
According to the tool, compared to the previous year, Twitter’s website traffic saw a 3.8% drop in global visits in February. Additionally, website traffic is down 8.6% year-to-date compared to the same period last year.
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