Twitter’s (NYSE:TWTR) stock slumped this morning on news that Elon Musk will not be joining its board of directors as planned. Shares have since reversed course to trade higher by 2%.
Musk was scheduled to be appointed to Twitter’s board of directors over the weekend, but he apparently informed the company on Saturday that he had decided against taking a board seat.
Twitter’s stock finished trading last Friday at $46.23 per share, up 8% year to date.
What Happened With TWTR Stock
On April 5, Musk announced that he would be joining Twitter’s board. The previous day, investors learned that the Tesla (NASDAQ:TSLA) CEO is now Twitter’s largest shareholder, having accumulated a 9.2% stake in the company.
While expectations were running high for Musk to join Twitter’s board, the company announced he had changed his mind.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
“Elon has decided not to join our board,” Twitter CEO Parag Agrawal wrote on Twitter on April 10.
Why It Matters
Twitter shares skyrocketed a week ago after Musk’s stake in the social media giant was disclosed publicly. In fact, TWTR stock had its best trading day ever, jumping 27%. Investors were excited by the potential changes Musk could bring to Twitter, a platform where he has more than 80 million followers.
Musk has already gotten busy tossing around ideas. In a Twitter poll, he asked users if the platform should have an edit button. In a more comical proposal, Musk asked users to vote on whether Twitter should drop the “w” from its name.
Other ideas he proposed include letting Twitter Blue subscribers pay with Dogecoin (DOGE-USD) and converting Twitter’s San Francisco headquarters into a homeless shelter as employees continue to work remotely.
What’s Next for Twitter
TWTR stock is in the spotlight today on news that Elon Musk is not joining its board and amid signs that the relationship between Musk and Twitter management has turned adversarial.
In a note to clients, Wedbush technology analyst Dan Ives told Twitter shareholders to “expect a Game of Thrones battle ahead” between Musk and Twitter’s board, saying that Musk could create “more noise and angst for Twitter Board/execs with various proposed platform changes.” The drama involving Twitter and Elon Musk may only just be starting.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.