We rounded up the best of business Twitter for the week ending on February 5.
(Bloomberg) - Just as Chamath Palihapitiya was the face of the SPAC frenzy that gripped financial markets at the start of the year, he is today the face of the bust.All six of Palihapitiya’s. On Twitter and in elite media, he was depicted as the rare swashbuckling, tech-age investor with the integrity to side with those demanding justice for rapacious short sellers and hedge fund. I'm Chamath Jayasinghe. Currently a computing undergraduate at NSBM Green University, Sri Lanka (with University College Dublin, Ireland).
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.
On Thursday, however, Palihapitiya’s Twitter account went quiet just when investors needed to hear from him most. Hindenburg Research published a critical report on Clover Health Investments. HATED that Chamath called Wall Street out for manipulating the market. I thought he was going to cry when Chamath gave him a swirly. Obviously if you've been reading Twitter or Barstool today you've seen Chamath's name a lot.
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.
Chamath Palihapitiya Twitter
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
Chamath Twitter Spac
— Hamish McKenzie (@hamishmckenzie) February 4, 2021On 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