Elon Musk’s Aggressive Plans Are Great for Twitter Stockholders

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TWTR stock - Elon Musk’s Aggressive Plans Are Great for Twitter Stockholders

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Elon Musk, the maverick entrepreneur and likely new owner of Twitter (NYSE:TWTR), feels he can double the social media platform’s sales to roughly $10 billion by 2028, a projection that is double what it made last year.

Musk outlined what investors can expect under his leadership in his pitch deck. It includes increasing Twitter Blue subscribers to a whopping 159 million users by 2028. The Twitter Blue service gives users access to multiple exclusive features, including an “undo tweet” option.

Moreover, he expects Twitter users to soar over the next few years, expecting a greater than 300% increase from current levels.

Furthermore, he has laid down plans to hire 3,600 new employees within the next years. It will employ 11,072 people by 2025, an enormous increase from its current employee base of 7,500.

Also, by 2028, he expects 104 million new subscribers for a brand new product called X. The service is expected to attract nine million users in 2023 and should grow exponentially by 2028. Despite being on the pitch deck, there was no mention of the product.

Analysts believe that Twitter’s board has no choice but to accept the offer from the Tesla CEO. If the deal is successful, shareholders will be getting at least $54.20 per share, over a 20% bump from TWTR stock’s May 12 opening price.

Moreover, the $1 billion contract termination fee further complicates the scenario for Twitter. Musk had come out with an offer at a time when it recently delivered another muted quarterly performance. The company has been inconsistent with its operational performance, trailing broader market returns over the past three years. Therefore, investors should bet on the deal going through and take advantage of the upside.

On the date of publication, Muslim Farooque 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


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/what-elon-musks-aggressive-plans-mean-for-twtr-stockholders/.

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