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Twitter Drops on Wall Street as Musk Won’t Become a Director After All

Social media company Twitter was among the losers at the opening of the stock exchanges in New York on Monday. Investors reacted with disappointment to the news that Elon Musk would not become a company director after all.


At the beginning of April, it was announced that Musk, the richest man in the world and CEO of Tesla, had taken a 9 percent stake in Twitter.

Twitter initially offered him a board seat, but Musk would not like that. Also, the top of Twitter said this is probably for the best. Musk himself is a regular user of the online messaging service. He has a whopping 81 million followers. Only seven people have more on Twitter. The stock lost 2.4 percent in early trading.

Apple (minus 1.4 percent) also lost market value. European competition authorities are said to be preparing an additional indictment against the tech group following the music streaming service Spotify complaint. The European Union previously accused the iPhone maker of disrupting the music streaming market. In addition, Apple would force developers to use its in-app payment system and not grant users access to other payment options.

In any case, it was a bad day for tech stocks because of rising interest rates. Tech gauge Nasdaq was 1.3 percent lower at 13,542 points shortly after opening. The other indicators in New York also lost. The broad S&P 500 fell 0.6 percent to 4464 points. The leading Dow-Jones index lost 0.2 percent to 34,649 points.

Pharmaceutical Pfizer was also in the spotlight. The maker of, among other things, a corona vaccine announced that David Denton would be the new financial director of the company. As a result, the stock gained 2 percent.

Oil prices fell. In contrast to the impact of the war in Ukraine, the spreading coronavirus in China, where many cities are locked, potentially reduces the oil demand. China is the largest importer of oil worldwide. As a result, the price of a barrel of US oil fell 3.8 percent to $94.46. Brent oil became 3.6 percent cheaper at $99.13 a barrel.

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