28.10.2022 – Just in time for Halloween, Elon Musk is delivering great cinema in Silicon Valley: he’s pulling off a major purge at Twitter. And he’s doing it right before the final takeover of the Twitter company. What reminds us of the horror movie “The Purge” makes the cultural chic cry out. And investors rejoice.
This is how a turnaround works: Elon Musk has bought Twitter after all. And now he’s cleaning up and getting rid of all those who drove Twitter into the abyss with their left-wing censorship. Applause, applause from our side. Of course, the stock market caught the scent early on. Some time ago, we also dealt with exactly this development: told you so… But we believe that there is still more to come for Twitter bulls.
Source: Bernstein Bank GmbH
What had happened: Musk fired key executives immediately after taking office. This was reported by the news channel CNBC, the financial blog “ZeroHedge” and the “Wall Street Journal”, among others.
Ejection of the censors
So, in particular, the top do-gooder Vijaya Gadde had to go – she was responsible for the policy against misinformation. Whereby mostly conservatives like Donald Trump had been censored, but rarely to never Islam-fascists or left-wing radicals. The latter are now experiencing in a lighter form what Stalin already went through in 1937: the Great Terror, whereby of course no one has to die. On the contrary, the arrogant guardians of virtue leave with millions in compensation. Their job had to give up in the night to this Friday the past company boss Parag Agrawal, general Counsel Sean Edgett and finance boss Ned Segal. According to media reports, at least one of the dismissed managers was escorted out of the office by security guards.
The bird is freed
Elon Musk, of course, shared the happy news on Twitter: “The bird is freed” – alluding to Twitter’s logo, the blue bird. The Tesla billionaire now wants to take over the chief executive position himself first, as the Bloomberg news agency reported. He also wants to immediately abolish lifetime blocks for users on Twitter. The Donald will thus probably soon tweet vigorously again; however, Bloomberg said that this case is still unclear. On Wednesday, Musk had appeared at the company’s headquarters in San Francisco, calling himself “Chief Twit.” Then on Thursday afternoon, he announced on Twitter that he had taken over the service.
Get woke – go broke
We expect further price-driving news as early as today, Friday – because Musk wants to introduce himself to employees, according to US media. Speculation that he wants to kick out three-quarters of the workforce is said to have been dismissed by him at headquarters this week. However, many sensitive, gender-sensitive, eco-conscious Islam-understanders are now likely to be allowed to look for a new job elsewhere on the fly. Which should also drive the share price. We are sure that the woke crowd will find a job at CNN, the “New York Times” or at German public broadcasters. However, Twitter has already rid itself of an obstructive morale ballast with the dismissals of its top managers: People don’t want to be constantly censored by neo-jacobins, but want to speak, discuss and argue freely. And that includes a dissenting voice. Anyone who eliminates this voice will go down in flames, as evidenced by the decline in readership of German newspapers.
Sell the News?
Now, however, a teeny restriction for the bulls: The official announcement on the completion of the roughly $44 billion takeover is still pending. The legal deadline for an agreement between Musk and Twitter is officially this Friday at 5 p.m. Eastern time (11 p.m. CEST). We may well see a “sell the news” after consummation. Musk had announced in April that he wanted to buy Twitter for 44 billion dollars – in July, however, the role backwards followed, mainly because of too many fake accounts. If the deal falls through in the last few meters or Musk disappoints investors with his announcements, the share price is likely to fall. However, if the purchase and the purge are rigorously carried out, we see further potential for the share after a possible short cash pile-up. After all, in addition to those preventing free speech, the fake accounts are likely to be weeded out. Which is attractive to advertisers and users. Bernstein Bank keeps them up to date!
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