We offer our view of Twitter because it is part of the total ARK Venture Fund portfolio. To see the most updated portfolio, please click here.
Twitter is a global social media platform focused on real-time news, ideas, and conversations. Twitter’s platform allows for global discourse on a wide-ranging number of topics, as users create and consume content, mostly in a text-based format today. As a hub for news flow, Twitter sits in a strategically important position within the social media ecosystem.
We believe Twitter’s full potential as a leading social media platform will be unlocked under the new management team led initially by Elon Musk. While it has struggled to scale user growth, engagement, and advertiser dollars in the past decade and has ceded some of its dominance to more content-rich platforms like Facebook, Instagram, YouTube, and TikTok, we believe that Twitter is valuable to those who have built audiences and businesses on its platform. In addition, it is a primary channel for real-time news and other content around the world. Adding creator-focused WeChat-like ‘super-app’ features could expand its business into direct monetization channels that will diversify and drive significant revenue growth. If Twitter were to roll out payments and other financial services, for example, the app could be transformed into a digital wallet.
We have high conviction in Elon Musk’s ability to transform Twitter into a more valuable platform for users and advertisers. His breakthrough successes as Co-Founder of PayPal and CEO of both Tesla and SpaceX have armed Elon Musk with experiences that could transform Twitter into a global super-app. Additionally, we believe Elon Musk will look to the many crossover opportunities that exist between his companies and will optimize for vertical integration where he can.
Disclosures
We offer our view of Twitter because it is part of the total ARK Venture Fund portfolio. To see the most updated portfolio, please click here. Holdings subject to change. Not a recommendation to buy, sell, or hold any specific security.
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ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain of the statements contained may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.
