About 15 months ago, Paul Singer wanted Jack Dorsey’s head on a plate, wherever in the world it was. Since agreeing to hold off the decapitation for at least the time being, in exchange for two seats on the board and a $2 billion share buyback, Dorsey—who Singer wanted canned in favor of a full-time CEO—has started a bank and brought more unwanted attention onto himself and the company, and Twitter—and with it, its share price—has continued to struggle.
So, sure, you could read Singer’s Elliott Management buying in to the dip, to the tune of $200 million and counting, as a vote of confidence, and certainly, someone somewhere wants you to do just that.
Elliott has shared its views with several Wall Street analysts since Twitter reported results on Friday, arguing the sell-off is overdone, the people said. Elliott likens the decline to similar swings in the company’s stock after advertisers pulled back spending during the Black Lives Matter protests last year, and when Twitter banned former U.S. President Donald Trump, the people said. The investment firm continues to believe Twitter is still on track to reach its goal of doubling annual revenue by 2023, as outlined at an analyst day in February, the people said.
On the other hand, this is Paul Singer we’re talking about, and if I were Jack Dorsey I wouldn’t be so confident about that. (Of course, I’m not Jack Dorsey, in no small part because I’m not as confident about anything as Dorsey is about everything.) I mean, do you really think Singer and Cathie Wood are likely to see eye-to-eye on anything, ever?
Cathie Wood’s Ark investment funds purchased 1.3 million shares of Twitter during the sell off, according to an investor update.