This post was originally published on this site
Cathie Wood, known for her big bullish bet on Tesla (NASDAQ:TSLA), is rolling the dice on Elon Musk again, this time with his latest venture… Twitter Inc (NYSE:TWTR).
Wood’s ARK (NYSE:ARKK) owns shares of the private company Twitter via ARK Ventures after Musk took the company private in a $44 billion deal on Friday. The firm said it has “high conviction” in Musk’s ability to transform the social media company into a more valuable platform for users and advertisers.
“We believe Twitter’s full potential as a leading social media platform will be unlocked under the new management team led initially by Elon Musk,” ARK said in its Twitter thesis. “While it has struggled to scale user growth, engagement, and advertiser dollars in the past decade and has ceded some of its dominance to more content-rich platforms like Facebook (NASDAQ:META), Instagram, YouTube, and TikTok, we believe that Twitter is valuable to those who have built audiences and businesses on its platform. In addition, it is a primary channel for real-time news and other content around the world. Adding creator-focused WeChat-like ‘super-app’ features could expand its business into direct monetization channels that will diversify and drive significant revenue growth. If Twitter were to roll out payments and other financial services, for example, the app could be transformed into a digital wallet.”
“We have high conviction in Elon Musk’s ability to transform Twitter into a more valuable platform for users and advertisers,” ARK Ventures added. “His breakthrough successes as Co-Founder of PayPal (NASDAQ:PYPL) and CEO of both Tesla and SpaceX have armed Elon Musk with experiences that could transform Twitter into a global super-app. Additionally, we believe Elon Musk will look to the many crossover opportunities that exist between his companies and will optimize for vertical integration where he can.”
