May 25, 2022, 7:54 a.m. EDT

Elon Musk is now losing money on his Twitter stock, as more than $1.1 billion in gains have been wiped out

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By Tomi Kilgore

Easy come, easy go, as shares of Twitter Inc. fell below where Elon Musk bought it, wiping out more than $1.1 billion in gains in four weeks.

The social-media company’s stock /zigman2/quotes/203180645/composite TWTR +2.25% sank 5.6% to $35.76 on Tuesday, the lowest close since March 16. It has tumbled 30.8% since it closed at a high of $51.70 on April 25, which was the day T witter agreed to be acquired by Musk for $54.20 a share.

A 13D filing with the Securities and Exchange Commission on April 5 showed that Musk, who is chief executive of Tesla Inc. /zigman2/quotes/203558040/composite TSLA +1.24% and founder of SpaceX, bought his 73.12 million shares of Twitter, or 9.1% stake, a t a weighted average price of $36.157 , according to a MarketWatch analysis of the data.

That means the stock closed Tuesday 1.1% below the purchase price, Musk would be losing $29.0 million on his investment. That compares with a $1.14 billion gain at the April 25 closing price of $51.70.

Keep in mind that the Twitter buyout deal comes with a $1 billion breakup fee , that could be paid by either Twitter or Musk, if the deal falls through.

On Wednesday, Twitter’s annual shareholder meeting is set to kick off at 1 p.m. Eastern. In the latest additional proxy statement filed on May 17 , Twitter included Musk’s tweet alleging 20% of Twitter accounts were fake/spam, and that Twitter refused to show proof that it was less than 5%. While the deal will likely be discussed, shareholders will not be voting on the deal at Wednesday’s gathering.

Twitter’s stock has dropped 17.3% year to date, while Tesla shares /zigman2/quotes/203558040/composite TSLA +1.24% have shed 40.6% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.06% has declined 17.3%.

/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 38.23
+0.84 +2.25%
Volume: 6.31M
July 1, 2022 4:05p
P/E Ratio
167.53
Dividend Yield
N/A
Market Cap
$29.22 billion
Rev. per Employee
$698,993
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 681.79
+8.37 +1.24%
Volume: 24.82M
July 1, 2022 4:00p
P/E Ratio
92.51
Dividend Yield
N/A
Market Cap
$706.34 billion
Rev. per Employee
$626,347
loading...
/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 681.79
+8.37 +1.24%
Volume: 24.82M
July 1, 2022 4:00p
P/E Ratio
92.51
Dividend Yield
N/A
Market Cap
$706.34 billion
Rev. per Employee
$626,347
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,825.33
+39.95 +1.06%
Volume: 2.20B
July 1, 2022 5:45p
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