Elon Musk is an unpredictable man.
Twitter shares are trading 10% below his bid in a continuing indication that the market is pricing in a decent likelihood that it falls apart.
Tesla shareholders are also unhappy today. There's some thinking that he could be distracted by the Twitter bid and others worried he could sell (or be forced to sell) his TSLA shares to fund his $44 billion bid for Twitter.
In any case, Tesla shares are down nearly 5% today and 16% this week. That's despite reporting earnings that were far better than expected. Technically, there's not much in the way for support until $700-$750.
Given these declines, Musk has lost more paper wealth than his TWTR bid is worth.
The other issue is that the aura of Cathie Wood is imploding. She made her name on very aggressive calls on Tesla that came true. It's the largest holding in her portfolio at 9.34%.
The problem today is that her third-largest holding is Teladoc and shares of that company are down 44% today and nearly 90% from the Feb 2021 high.
The 'transformative innovation' gurus aren't having a great day; in part because this market is increasingly looking at the bottom line and cash flows.
The S&P 500 has trimmed a 50 point gain to 31 points. The Nasdaq has also given up nearly half its gain.
