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Musk/Twitter: bizarre equity offering provides vibes in place of value

Despite the platform’s problems, the billionaire’s latest move has generated some interest

The meme stock phenomenon has not ended. It has merely migrated. In 2020 and earlier this year, zombie companies such as GameStop inspired retail investors to rally on social media then drive up share prices.

Elon Musk can apparently create a similar vibe at Twitter. The app is now privately held by the billionaire entrepreneur and institutional investors. Its value has plummeted from the $44bn purchase price, stung by the advertising downturn and Musk’s erratic leadership.

Few CEOs could run an investment into the ground this quickly. Musk himself has, for example, broached a bankruptcy multiple times. Yet the Musk circus has an approving as well as a disapproving audience. Perhaps that alone can temporarily upend the natural laws of finance.

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