Elon Musk’s recent purchase of Twitter has spurred investors to purchase 30 times more shares in a 24-hour window, according to new data from Saxo Markets.
Traders bought 3,186% more shares on April 14th compared to the previous day, when news broke the Tesla owner was set to finalise the acquisition.
Since then, Twitter’s share price has risen 9%.
After the official announcement on April 25th, Saxo Markets clients bought 996% more Twitter shares compared to the previous 24 hours.
In comparison, Tesla has lost $126bn in market cap. Musk has since sold $4billion in shares of the electric vehicle company and its share price has fallen 13%.
“The Twitter deal raises questions for the future of social media,” Saxo Markets head of equity strategy Peter Garnry said.
“Expectations of wide-ranging changes by Elon Musk, especially given his ideas around free speech on the internet, could go either way.
“Alternative platforms are probably already under development, but whether they will see any interest will depend on how unpopular are Musk’s changes to Twitter.
“Part of the deal is massive use of debt which multiplied with the current interest rates will eat most of Twitter’s immediate operating profits, but since the company is going private the profit generation is no longer the main objective.
“Our view is that Musk’s acquisition of Twitter could be a problem for Tesla going forward as governments may use Musk’s ownership of Twitter against him in negotiations with Tesla.”