Investors in Twitter should be nervous and scared right now. Twitter asserted in its SEC filings that just roughly 5% of all accounts on the platform were phony accounts. That figure now appears to be pathetically low. Because the number is so small, the SEC should evaluate if this is an instance of fraud. The SEC filings are used to purchase stocks and make long-term investments.
If these Twitter reports are true, then everyone who bought shares has been misled. The SEC could either seize control of the company and sell its assets, or it could sell the entire company to the highest bidder.
According to Newsweek, half of Joe Biden’s followers are fake. I would actually wonder if that number were low, too. And if you remember, just this week I reminded you all about how I learned that Joe Biden had a lot of fake followers; people who had just created accounts in January and followed him right away.
Nearly half of President Biden’s 22.2 million Twitter followers are bogus, a new audit revealed.
The audit, which was done for the social media giant by software firm SparkToro, found that 49.3% of the president’s followers are “fake followers,” according to Newsweek.
SparkToro has defined “fake followers” as “accounts that are unreachable and will not see the account’s tweets (either because they’re spam, bots, propaganda, etc. or because they’re no longer active on Twitter).”
Tesla CEO Elon Musk, who is attempting to buy Twitter, has expressed concern over the growing number of fake accounts and proposed a potential crackdown on the sham accounts.
Elon Musk has already stated that he made his bid on Twitter after taking into account Twitter’s SEC filings. He may cancel his bid without having to pay the $1 billion penalty cost if it’s proven that those filings were inaccurate.
20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher.
My offer was based on Twitter’s SEC filings being accurate.
Yesterday, Twitter’s CEO publicly refused to show proof of <5%.
This deal cannot move forward until he does.
— Elon Musk (@elonmusk) May 17, 2022
If, indeed, Twitter’s stats are actually inaccurate, they will face a massive lawsuit that they will be unable to win. As a result, Twitter may be forced to declare bankruptcy. Should that happen, there would be an opportunity for the proper buyer. For the discounted price of the equipment, you might be the largest part of Twitter. Musk may end up owning a site comprised entirely of Twitter equipment for less than half the price of the entire firm.
Photo Credit: YouTube/Breaking Points