Ark Invest has been a big investor in electric vehicle leader Tesla Inc TSLA and its CEO Elon Musk. The founder of Ark Invest shared thoughts on another company Musk could soon be leading.
What Happened: Ark Invest and founder Cathie Wood have been bullish on Tesla for years, with Wood famously giving a price target that was higher than her peers which was eventually reached.
With a pending acquisition of social media platform Twitter Inc TWTR by Musk, Wood was asked for her thoughts on what the acquisition could mean and if she was concerned about the potential time commitment by Musk.
“We are prolific users of Twitter, our most prolific platform is Twitter,” Wood said in an interview with Yahoo Finance.
Wood said Musk might work closely with former Twitter CEO and co-founder Jack Dorsey and open up the ecosystem.
“I’m kind of excited to see what Elon will do," she said.
Wood noted Musk could add value to the Twitter ecosystem and eliminate censorship. When asked if she was worried about the lack of censorship as a problem on the platform, Wood said no.
“We can unfollow people if there’s bad behavior, that’s our choice.”
Wood said there’s a lot of wisdom on Twitter and she is sick of the “nonsense” on some of the other social media platforms.
“Twitter, we think, is going to give us more tools to filter out the nonsense to get right down to business.”
Related Link: Cathie Wood's Confidence In Tesla Couldn't Be HIgher
Why It’s Important: Tesla is the largest holding in three of the Ark Invest ETFs, making up 9.3%, 8.8% and 10.4% in the Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and the Ark Autonomous Technology & Robotics ETF ARKQ, respectively.
Wood is the second Ark Invest executive to share recent comments about Musk’s pending acquisition. Ark Invest Chief Futurist Brett Winton took to Twitter recently to reveal his views.
“Status quo ante, if @elonmusk says the ‘wrong thing’ and gets de-platformed that substantially degrades his ability to synchronize and communicate with customers, stakeholders and employees,” Winton said.
The acquisition of Twitter by Musk could lower that risk, Winton said.
“Further, that the platform can be capriciously and arbitrarily denied to *anyone* both weakens the business-case for the platform and invests the platform operator with more power than is logical.”
The comments by Wood and Winton show a belief that Musk can improve Twitter, which could lead to the social media platform being added to Ark Invest ETFs over time.
Twitter was previously held in the Ark Next Generation Internet ETF and the Ark Fintech Innovation ETF ARKF. Ark Invest sold its position in Twitter around the time Musk announced he was walking away from the acquisition.
An investment in Twitter, if the company is acquired by Musk, could show support for the Tesla CEO and his many ventures once again.
TWTR Price Action: Twitter shares closed Friday at $50.45 versus a 52-week range of $31.30 to $68.41.
Photo: Wood, YouTube; Musk,Twitter, Shutterstock
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