Twitter (NYSE:TWTR) stock is in the spotlight following an announcement from CEO Parag Agrawal. Agrawal explained that Elon Musk would participate at the Twitter all-hands meeting on Thursday, June 16. Employees will be able to submit questions to the Tesla (NASDAQ:TSLA) CEO in advance.
In April, Musk agreed to acquire the social media platform for $44 billion. This created quite a controversy for Twitter employees, as Musk questioned the company’s operations and bot count. He even went as far as saying that the deal could be terminated unless Twitter proves that bots account for 5% or less of its users. Meanwhile, research firm GlobalData conducted a study on the number of Twitter bots. The firm concluded that bots comprise about 10% of all accounts. Some investors have also speculated that Musk is bringing up the bot data as a way to back out of the deal.
As a result, the uncertainty of the deal has left employees uneasy about their jobs.
Musk to Participate in Twitter All-Hands Meeting
Musk’s potential acquisition of Twitter would undoubtedly result in massive changes for the company. He has stated that he will add an edit button, increase the tweet character limit, and make the platform’s algorithm visible to the public. In addition, Musk recently required all Tesla employees to be in the office for at least 40 hours per week. Because of this, some Twitter employees suspect that he may enact this policy at Twitter as well if the acquisition goes through.
Last week, Twitter’s board reportedly offered to give Musk access to its “firehose data.” The firehose data is Twitter’s massive stream of data that contains more than 500 million tweets per day. Last week, it was reported that the data “could be provided as soon as this week.”
However, Twitter executives are skeptical that Musk’s access to the data could provide any new information. This is because more than 20 companies already have access to the data for several years. These companies pay Twitter for the data to find social patterns among users.
Ultimately, an understatement of bots could directly affect Twitter’s financials, as well as advertising efficiency. Daily active users (DAUs) is a key statistic to track for social media companies. If proven that Twitter has been understating their bot count, TWTR stock could plunge.
On the date of publication, Eddie Pan did not hold (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.