We rounded up the best of business Twitter for the week ending on February 5.
There’s never a dull moment on Twitter — but especially not on business Twitter, where the richest person on the planet posts dogecoin memes and VCs post shirtless selfies.
We rounded up the most notable tweets from this week, including Substack’s co-founder embracing Twitter and Facebook, Robinhood’s CEO doing damage control, and, of course, Elon Musk taking a break from Twitter only to return as a dogecoin spokesman.
Famed investor Chamath Palihapitia tweeted a shirtless selfie on Wednesday, The so-called thirst trap went viral among tech members of the Twitterati. Here are some of the best responses to. Billionaire investor Chamath Palihapitiya said Tuesday that he had purchased February call options on GameStop amid the stock's controversial Wall Street surge.
1. Elon Musk praises dogecoin
Dogecoin is the people’s crypto
— Elon Musk (@elonmusk) February 4, 2021After Musk tweeted about the meme cryptocurrency, dogecoin shares rose 50% in a matter of hours, and trading tripled. The world’s richest person likely tweeted about dogecoin as a joke, which itself started as a joke in 2013 after a wave of cryptocurrencies were introduced. What's not so funny is dogecoin's total value. Despite being about 4 cents a pop, their combined market value is $6.3 billion.
Musk wasn’t the only one to tweet about dogecoin. Billionaire investor Mark Cuban even got in on the discussion, saying he’d rather invest in dogecoin than a lottery ticket.
If I had to choose between buying a lottery ticket and #Dogecoin .....I would buy #Dogecoin. But please dont ask me to choose between it and anything else 😁😁😁 https://t.co/BXwqHnq9IZ
— Mark Cuban (@mcuban) February 4, 2021Comparing dogecoin to a lottery ticket may not be high praise, or any praise at all, but the fact that the cryptocurrency made a comeback after the GamesStop stonk saga is certainly notable.
2. Chamath posts a ‘thirst trap’ selfie
You’re welcome. pic.twitter.com/j9pGVEMLwd
— Chamath Palihapitiya (@chamath) February 3, 2021It all started when Dr. Parik Patel tweeted one of the most iconic photos of Jeff Bezos — sunglasses-and-vest-clad Bezos — with the caption: “This is the ideal male body. You may not like it, but this is what peak performance looks like.” Investor Chamath Palihapitiya replied with a shirtless post-workout selfie with the words: “You’re welcome.” He then listed his workout routine and diet, which included pilates, running, boxing, no drugs, and minimal alcohol.
The tweet received replies from founders and investors like Sheel Mohnot, David Sacks, and of course, a tweet or two from satire account VCs Congratulating Themselves.
3. Substack’s co-founder welcomes Twitter and Facebook
My thoughts on Facebook and Twitter going after the Substack opportunity: In short, I hope they go all in.
The information ecosystem is at a crisis point and the world needs drastic action to unpoison the well. This is a good start. https://t.co/VomMCduMli
On January 26, Substack co-founder Hamish McKenzie wrote a tongue-in-cheek tweet to poke fun at Twitter’s announcement that it had acquired newsletter platform Revue. The tweet, which pointed out the irony of Twitter’s acquisition, simply said “General Motors announces the Bolt.” After some backlash, McKenzie wrote a blog post on (where else?) Substack explaining his stance on Twitter and Facebook getting in on the newsletter game.
“I genuinely believe that Twitter and Facebook getting into paid newsletters is good for writers and a positive development for the media ecosystem,” McKenzie wrote. “We need more initiatives that give power to writers and reduce the force of the attention economy, just as we need more electric cars, more solar energy, and less burning of fossil fuels.”
The blog post got mostly positive responses, because McKenzie wasn’t out to get big tech. Instead, he welcomed the competition. As Facebook rolls out its newsletter platform, and Twitter develops Revue, Substack may have to fight to keep its place as the number one newsletter platform.
4. Vlad Tenev does damage control
Last week we saw the impact the two-day trade settlement period has on investors and ultimately the entire American financial system. Clearinghouse deposit requirements skyrocketed overnight. (2/9)
— VLAD (@vladtenev) February 2, 2021As Robinhood reels from the GameStop stonk fiasco and a serious hit to its company reputation, co-founder and CEO Vlad Tenev set out to repair the damage. On Tuesday, Tenev called for the end of two-day settlement periods for trades, blaming Robinhood’s trade shutdown on an archaic financial system.
The two-day settlement, or T+2 for short, is the period of two business days between a trade and the settlement of that trade. So, if you buy shares in a stock, you don’t technically own them until that period is over, which can lead to increased risk.
This thread from investor Sahil Bloom explains Tenev’s stance nicely:
THREAD: Robinhood and other brokerages came under fire last week for restricting trading in certain securities, including $GME and $AMC.
A thread simplifying the underlying mechanics of this drama and explaining why our archaic T+2 settlement system is to blame... pic.twitter.com/oVA5kJwqTG
Without T+2, Tenev, argues, investors wouldn’t have had to wait as long for their trades to clear, reducing unnecessary risk. While Tenev may have a point, that doesn’t change the fact that Robinhood’s reputation among traders, both professional and amateur, was perhaps irreparably damaged. A recent petition surfaced on Change.org that calls for Tenev’s resignation — to date, it has over 15,000 signatures.
5. Dan Price posts a laundry list of overpaid CEOs
There is no connection between the stock market and reality.
A thread:
1. Airlines spent 96% of free cash flow on stock buybacks for a decade, then cut 90,000 jobs as soon as trouble hits. Then they got a $50 billion bailouthttps://t.co/9vwa4TpaSn
Gravity Payments CEO Dan Price is an outspoken critic of wealth inequality and CEO pay in the US. Price first gained recognition for lowering his salary from $1.1 million to $70,000, and raising the minimum wage of his employees to the same annual rate.
In his latest Twitter thread, Price outlined why he thinks the stock market doesn’t reflect reality. He included a list of companies that have been reported to struggle financially or laid off workers, all while increasing CEO pay or turning a profit. Those companies include: GE, JCPenney, Coca-Cola, Disney, Salesforce, AT&T, Marriott, MGM, Wells Fargo, Deere, Walmart, and Macy’s. Price also included several stats about income inequality, CEO pay across the board, and worker productivity. And what thread about income inequality would be complete without mentioning Jeff Bezos?
Some parting words from Elon Musk:
I am become meme,
Destroyer of shorts
Chamath On Twitter
CNBC's Jim Cramer has been bashing SPACs on Twitter and his show this week. That drew attention from the so-called SPAC King Chamath Palihapitiya.
What Happened: Cramer recently highlighted Spartan Energy Acquisition (NYSE: SPAQ), a SPAC merging with Fisker. Cramer compared Henrik Fisker and his company to Nikola (NYSE: NKLA) and Trevor Milton, the Nikola founder who resigned.
On Wednesday, Cramer told his 1.4 million Twitter followers “I am sick of SPACs!.” A simple response came from Palihapitiya:
Why?
— Chamath Palihapitiya (@chamath) October 1, 2020
Cramer’s Thoughts On SPACs: Cramer tweeted to “Squawk Box” host Andrew Ross Sorkin, “Why do investors think that every SPAC is a winner.” Cramer got the following response from Sorkin:
I don’t understand it. But here is one thought: For many investors in a SPAC, pre-merger, it is simply an arbitrage, financial engineering play: they borrow money to invest and capture the spread when a deal gets announced.
— Andrew Ross Sorkin (@andrewrsorkin) October 1, 2020
Cramer went on to say that SPACs make his job hard “because I have to learn each one and there are so many of them.” He said there is “massive homework” needed on SPACs.
Cramer took the SPAC market further by comparing the risks of SPACs to the 2000 dot-com bubble:
It's really amusing that, like in 2000, i tried so hard for people to see the risks because i wanted them to stay in the market but in more staid conservative ways. Here i am again, recommending some specs but also some solid American companies and there's no place for that here
— Jim Cramer (@jimcramer) October 1, 2020
He later admitted the SPAC market is difficult to learn:
Last word on SPAC's; i am actually honest enough to admit that it is difficult to learn all of these. I hate SPACs like i hate doing homework. I do it but it's hard and it's difficult to know what a person is going to do with the money. But there is no mercy for honesty
— Jim Cramer (@jimcramer) October 1, 2020
Chamath Chimes In: Palihapitiya noticed the question Cramer posed to Sorkin and shared his thoughts:
I’d offer this:
1) It’s not so easy: not all deal announcements go well - several of these right now.
2) Sponsors decide initial spac allocations. I personally decide every allocation.
It’s important to construct initial owners who are skilled, long term investors. Arbs suck.
— Chamath Palihapitiya (@chamath) October 1, 2020
Palihapitiya recently shared his thoughts at the Benzinga Boot Camp offering up the bull and bear case.
“It unlocks access to growth companies to a broad cohort of people that were otherwise shut out,” Palihapitiya said.
He cautioned that the SPAC process is hard and investors need to believe in the management team. He cited his “skin in the game” of personally investing in the deals his company completes. Palihapitiya said investors are betting on the decision making and access that the management team has.
What’s Next: Cramer is teasing that SPAC people will love his “Mad Money” show Thursday night. We will see if that means discussion on SPACs or a special guest to discuss the sector. Maybe Palihapitiya is ready to set the record straight.
Chamath Palihapitiya Twitter Video
Palihapitiya’s Social Capital Hedosophia II (NYSE: IPOB) is set to merge with Opendoor. Social Capital Hedosophia III (NYSE: IPOC) is actively searching for a target company. Palihapitiya’s next three SPACS IPOD, IPOE and IPOF are getting close to debuting.
Photo courtesy of Tulane University.
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