this post was submitted on 10 Jan 2024
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Something that I feel needs to be reiterated with all of these "news" pieces - the "71% drop" everyone is touting is from the stupidly high price Musk bought Twitter for that only ever represented his desire to flex, not the value held by the site itself. Even Musk knew it wasn't worth that much and tried desperately to get out of the deal himself.
It wasn't just him though, he put up less than half the money. Other investors and lenders backed that price and hoped to profit after the purchase. I think it's fair to say that the market valued Twitter + Elon at the price he paid, and was initially willing to pay more than what Twitter was trading at because they bought into the idea that he'd do good things with it.
Elon only wanted to back out after tech stocks overall dropped further following an increase in inflation concerns (they were already down, providing an opportunity for the buyout, but continued to fall after the deal). But most tech stocks have since recovered those losses and the nasdaq is up about 10% from where it was at the time of the deal.