The power of Twitter has long been studied as an influencer on public opinion, financial governments, and government. While no clear answer has been drawn, we witnessed a gigantic leap on Tuesday. Carl Icahn, billionaire investor and one who “makes money studying natural stupidity,” used Twitter to reveal his opinion and ownership of Apple stock. “We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.”
Apple’s market value jumped by about $20 billion. Talk about powerful.
In recent months the SEC has been stepping up the legal limbo in regards to social media. SEC has issued rules which demand that a company disclose any material in a tweet, file with the SEC, and send out a PR release. Carl did that and the Twitter world responded.
According to John Shinal of USA Today, “If Twitter becomes a de facto news wire — with any investor or company able to use it to distribute material information — it will have the capacity to take future revenue away from those three huge news operations.”
“Twitter may one day do to business and technology news writing a bit of what Google has done already to the business side of general news — suck about $50 billion a year away from its revenue stream.”
What do you think about the ability to use Twitter to boost company value? Does Twitter truly understand the power of the platform?