In everyday life everyone is influence by someone and on social media you can follow people that are known and receive money as influencers. The more followers a person has, the more various clothing labels will give to the person to wear and that should translate into sales. Influencers have been with us for generations and will be with us for a long time to come.
On Wall Street, one of the biggest influencer is Elon Musk of Tesla fame because his stock has done very well and when you done well once, people believe you can continue to do well.
In an article by Krystal Hu of Reuters, Elon Musk announced he owns 9.2% of Twitter shares and millions of people bought shares sending the price up 25%. According to Vanda Research most of the buying was done by retail investors and the $152 million inflow into the stock was the largest of all stocks and ETFs on US exchanges for the day.
Elon Musk besides of Tesla fame also owns SpaceX and his net worth according to Forbes magazine is worth abut $290 billion.
If you think about Twitter, the issue is can Twitter attract more advertising dollars to be profitable given its short number of characters that defines Twitter? Can Twitter generate more revenue from subscription services? Some retail buyers believe Mr. Musk can help monetize the platform and Mr. Musk has joined the Board of Directors to have input.
Linking to dividend paying stocks, every industry has its influencers and as long as they are successful, people will pay attention. In investing unless you have a very short time period, over the long run it is good to invest in profitable companies that can pay dividends. Everyone is influenced by someone but it is helpful if the person you are influenced by has gone through some cycles of the economy and still be successful.
There are more questions than answers, till the next time – to raising questions.