Article: Is Elon Musk’s Toxic Reign Coming to an End?

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Is Elon Musk’s Toxic Reign Coming to an End?

Tim Fries, 10 July 2021

Afew years ago, no one would have expected for one man to introduce so much volatility into the crypto space. Elon Musk filled that ignoble role, but everything has its expiry date.

What Did Elon Musk Do to Deserve 58 Million Followers?
Elon Musk got his first major financial breakthrough when he sold his Zip2 company to Compaq in 1999 for $307 million. Three years later, as a co-founder of PayPal, he sold it to eBay for $1.5 billion. Established business pedigree and these two financial injections were sufficient for him to focus on more concrete projects: Continue reading “Article: Is Elon Musk’s Toxic Reign Coming to an End?”

Article: Amazon Got Some Warrants

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Amazon Got Some Warrants

Matt Levine, 30 June 2021

A recurring theme of this column is that if you have the power to make the price of a financial asset go up, you should (1) do that but (2) buy a lot of it first. So for instance Tesla Inc. is a big company and its chief executive officer, Elon Musk, is a famous influential guy with a lot of Twitter followers. So when Tesla announced that it would start accepting Bitcoin as payment for its cars, the price of Bitcoin went up. This was very predictable. So what did Tesla do? It bought $1.5 billion of Bitcoin before announcing the news, and then Bitcoin went up and it had an immediate gain. 1

I am a simple man and to me this seems good. Buy a thing, create good news for the thing, announce that news, watch the price of the thing go up. In general I think it is under-utilized, as a strategy. You don’t hear stories about, like, Moderna Inc. running a successful trial of its coronavirus vaccine and buying a ton of call options on cruise lines and airlines before announcing the news. That would have been a good trade! Continue reading “Article: Amazon Got Some Warrants”

Article: Reddit Hates Short Sellers, But the Stock Market Needs Them

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Reddit Hates Short Sellers, But the Stock Market Needs Them

Brandon Kochkodin, 23 June 2021

There’s something a little weird about short selling. Shorting—or betting that a stock’s price will fall—is a feature of finance that doesn’t have a close analogue in the real-world economy.

Buying a stock you like isn’t much different from purchasing a product that catches your eye. But if you’re walking through the local grocery store and see an item that sets your stomach turning—say, ketchup-flavored potato chips—you don’t stand in the aisle waving off other customers, telling them how bad it is. You don’t try to crush the bag. You just think, “Who in the world eats this … ” and go on your merry way without putting it in your cart. Continue reading “Article: Reddit Hates Short Sellers, But the Stock Market Needs Them”

Article: Musk Denies Bitcoin ‘Pump And Dump’—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached

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Musk Denies Bitcoin ‘Pump And Dump’—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached

Jonathan Ponciano, 13 June 2021

As the cryptocurrency market’s weeks-long rout continues, Tesla’s billionaire CEO Elon Musk took to Twitter Sunday afternoon to refute claims that he engaged in a bitcoin pump-and-dump scheme earlier this year and said the electric-vehicle company would once again invest in the world’s largest cryptocurrency once its mining operations constitute a “reasonable” amount of clean energy usage. Continue reading “Article: Musk Denies Bitcoin ‘Pump And Dump’—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached”

Article: Vatican financial crime charges are due to lack of experience

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Vatican financial crime charges are due to lack of experience

Thomas Yeung, 09 June 2021

Early investors in AMC (NYSE:AMC) got their payday last week when the stock jumped from low double-digits to $72. Anyone who bought $20 options before the Memorial Day weekend would have turned $1,000 into $116,000.

But Wall Street still seems to get one thing wrong: it’s not about an investment story. If it were, Cinemark (NYSE:CNK) and Imax (NYSE:IMAX) would have also gone up; they were both down for the week. Continue reading “Article: Vatican financial crime charges are due to lack of experience”

Article: Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?

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Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?

William White, 07 June 2021

Naked shorting is trending on Twitter (NYSE:TWTR) today and it looks like there’s no end in sight to the meme stock mania as users react to the news that kicked this all off.

All of the excitement around naked shorting started after CNBC host Melissa Lee mentioned that the practice was taking place with shares of AMC Entertainment (NYSE:AMC) stock. The host said the following while discussing the matter.

“There’s a lot of people, a lot of short sellers out there borrowing stock they didn’t have.” Continue reading “Article: Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?”

Article: ‘Stopelon’ Group Protests Elon Musk’s Cryptocurrency ‘Market Manipulation’ Outside Tesla Fremont Factory

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‘Stopelon’ Group Protests Elon Musk’s Cryptocurrency ‘Market Manipulation’ Outside Tesla Fremont Factory

Madhukumar Warrier, 07 June 2021

Supporters of a new cryptocurrency named “StopElon” on Sunday protested outside Tesla Inc.’s (NASDAQ:TSLA) Fremont factory over CEO Elon Musk’s involvement in the cryptocurrency market, according to a report by NBC Bay Area News.

What Happened: Activists of the “Stopelon” group alleged that Musk has far too much power over the cryptocurrency market. The group also wants Musk to be removed from the social media company Twitter Inc.’s (NYSE:TWTR) platform. Continue reading “Article: ‘Stopelon’ Group Protests Elon Musk’s Cryptocurrency ‘Market Manipulation’ Outside Tesla Fremont Factory”

Article: Why Naked Short Selling Is Not As Prevalent As You Think

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Why Naked Short Selling Is Not As Prevalent As You Think

Wayne Duggan , 07 June 2021

AMC Entertainment Holdings Inc AMC 0.16% jumped another 10% on Monday, and the hashtag #NakedShorting was trended on Twitter in the process.

On Monday’s Benzinga PreMarket Prep, co-host Dennis Dick discussed why the idea that naked short sellers are behind the high short interest in stocks like AMC and GameStop Corp. GME 0.03% is a completely false social media narrative. Continue reading “Article: Why Naked Short Selling Is Not As Prevalent As You Think”

Article: Elon Musk is still facing SEC acting as Twitter police over his Tesla (TSLA) tweets

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Elon Musk is still facing SEC acting as Twitter police over his Tesla (TSLA) tweets

Fred Lambert, 01 June 2021

ew information is revealing that Elon Musk still has the Securities and Exchange Commission (SEC) on his behind acting like Twitter police over his tweets about Tesla.

Tesla, Elon Musk, and the SEC
Musk and the SEC have had a few run-ins with each other, and it was rarely with a good outcome. Most famously, the SEC filed a lawsuit against Musk over his infamous “funding secured” comment regarding his failed attempt to take Tesla private back in 2018. The Security and Exchange Commission (SEC) judged that Musk exaggerated when saying that the funding was “secured”: Continue reading “Article: Elon Musk is still facing SEC acting as Twitter police over his Tesla (TSLA) tweets”

Article: Reddit grows up on its way to an IPO

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Reddit grows up on its way to an IPO

Nicolás Rivero, 17 April 2021

Reddit has traditionally taken a laissez-faire approach to policing content on its platform. The company hosts a loose federation of old-school internet forums, known as subreddits, which are each overseen by a team of volunteer moderators. Reddit sets certain baseline rules banning things like child porn, drug sales, and (as of 2015) harassment. But the rest is up to the users in each subreddit, who set their own community-specific norms and empower unpaid moderators to enforce them.

This is a starkly different moderation approach from Facebook and Twitter, which each set clear, granular, top-down rules in their terms of service and employ armies of contract workers and far-reaching algorithms to weed out noxious content. Reddit’s decentralized policy has become a liability in recent years, and may become even more of a drag as the company eyes an IPO. (Reddit recently hired Drew Vollero, who helped Snapchat go public in 2017, as its first-ever CFO to help prepare for the company’s debut on the stock market.) Continue reading “Article: Reddit grows up on its way to an IPO”

Article: Documents Detail Wild Alleged $25M Gaetz Extortion Scheme

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Documents Detail Wild Alleged $25M Gaetz Extortion Scheme

TYLER DURDEN, 31 March 2021

Rep. Matt Gaetz possesses text message screenshots, an email, and a typed document that purportedly support his claims that a federal investigation into his relationship with a 17-year-old is related to an extortion scheme against him.

On Tuesday, the New York Times reported that the Justice Department is investigating whether Gaetz had a sexual relationship with a 17-year-old and paid her to travel with him. Gaetz has called the report “totally false.” Gaetz told Axios that his lawyers told him that he “was not a target but a subject of an investigation regarding sexual conduct with women.”

The Florida Republican countered the report on Twitter and in statements to Axios and Fox News with a claim that his family is being extorted for $25 million and that the people pushing stories about an investigation into his relationships with women are the people extorting him and the subjects of an FBI extortion investigation over the last few weeks. Continue reading “Article: Documents Detail Wild Alleged $25M Gaetz Extortion Scheme”