Stocks you should buy if you love Elon Musk

Elon Musk is a polarizing figure, but it didn’t prevent him from being iconic. The number of followers he has is huge, and no doubt all of them have spent the last couple of weeks celebrating that the technoking has finally bought Twitter. Now they can not only tweet on the platform but also invest in it. Moreover, once the deal goes through, Twitter shares will probably show less volatility… oh wait. Twitter stock doesn’t exist anymore on the market. The company has officially become a part of X Holdings II, which belongs to Elon Musk, and its stock was delisted from The New York Stock Exchange. 

Some may ask a reasonable question – “What will happen to the shares that have been already bought?”  Well, every stakeholder gets $54.20 (classic Elon) for every Twitter share in their portfolios – that’s the price Elon Musk paid per share to own the company. Why did he do that? God knows, but we may think of some possible reasons. 

This April, Musk became Twitter’s largest shareholder and also claimed that he would buy the social media giant. After that, the full of twists six-month drama began. Musk decided to cancel the deal, which prompted Twitter to take him to court, and when those court hearings were due to begin, he once again resumed the talks… So, while Musk was changing his mind faster than the weather, every piece of news harshly hit Twitter’s share price. The whole affair finally came to an end a couple of months ago. 

The history of Twitter as a public company lasted for 9 years and had many of its own bright moments. Hopefully you’re not one of the unlucky ones that invested in Twitter when it cost $75.

However, on the market, there are more companies under Elon Musk’s influence. 

First and foremost of those is Tesla, of course. Musk is the CEO of this brand and its shares have lost more than 45% since Elon said in April that he would buy Twitter. We know, it does not sound way too exciting, but analysts are actually pretty optimistic on the future of Tesla – the average forecast expects an upside of around 50% in the next 12 months. 

The second one is PayPal. Musk is kinda like a “parent” to this payment heavy-weight, though he is not its founder. And this year, PayPal stock is going through a rough stretch — it has already seen a 60% drop. But, experts once again remain fairly bullish on the brand’s future, with their average forecast sitting at about +30%. 

Etsy and Gamestop are two more Elon Musk-related companies. Etsy is loved by analysts, they think that its stock might increase by around 17% in the next 12 months. Unfortunately for Gamestop, it is the only company from our list that experts have a discouraging forecast for.

So, does this all mean that adding Tesla, PayPal, and Etsy to your portfolio will make you happy? Well… no. First, you need to do your own research before making any investment decisions. Second, most analysts still believe that the American market is overvalued.

This is despite all the events that have touched on the market over the last two years. The Covid pandemic, the military conflict between Russia and Ukraine, the energy crisis, record inflation — the list goes on, and these are all factors that obviously cannot be ignored.

Indices aren’t immune to external pressures either. For example, the S&P 500 index, containing the stocks of the 500 biggest companies listed in the US, has dropped by about 19% in the last 12 months.

If the S&P 500 continues its trend of declines, that damage will overflow into the entire US market – including the aforementioned Tesla, PayPal and Etsy. So, always remember to do your own research and analysts before buying or selling any asset – and don’t forget that there are always companies that will go up while the rest of the market goes down.