over 2 years ago • 1 min
Elon Musk, Tesla’s CEO, has few equals in the worlds of business and investing. The briefest mention of a stock or crypto token can send his 65 million Twitter followers flocking to buy – or indeed sell.
His unrivaled influence prompted Bloomberg columnist Matt Levine to write in February that, “the way finance works now is that things are valuable not based on their cash flows but on their proximity to Elon Musk.”
Now the data firm Quiver Quantitative has taken the next step and launched an investment strategy that attempts to put a hard number on a stock’s “Elon proximity” – based on how closely Musk’s Twitter account follows a firm.
Apart from Tesla, Musk’s own firm, the stocks rated to have the highest “Elon Proximity” include satellite firms Maxar Technologies (ticker: MAXR) and Iridium Communications (ticker: IRDM) and arms companies Northrop Grumman (ticker: NOC) and Axon Enterprise (ticker: AXON).
Quiver Quantitative now plans to track the top 15 firms to see if there’s any evidence that proximity to Musk – or at least his Twitter account – genuinely leads to better performance in the stock market.
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