CHARLES SCHWAB, Ill.
(AP) Charles Schwabs investment in tech-focused companies that focused on technology and data analytics wasn’t a windfall for the billionaire, but it may have helped drive the $17.8 billion investment.
Schwab, the founder of the investment firm Schwab Funds Management, invested in LinkedIn, Twitter, Spotify and Tesla Motors.
He made the investment after seeing the company’s performance and being inspired by the company as a company.
Schwebs stock soared to a record high of $8.60 after the investment was announced Thursday.
The company’s stock has been on a tear this year and is up more than 30% since the start of the year.
Schwalbs’ investment has generated the kind of buzz that would be expected from a tech IPO, said Paul W. Egan, who oversees technology and investment strategy for the investment advisory firm Capital Research Partners.
It’s a really big story for the company.
But it also presents a challenge, he said.
It might be too big for the stock to be bought by people who want to buy stock and sell it.
Investors have been asking the question of whether Schwab will be able to recoup the investment.
If the stock does, they’ll need to see what happens with the company, Egan said.
Schwarbs didn’t immediately respond to a request for comment.
Shares of the company fell sharply on Thursday.
Schwab stock has fallen in the past month as its stock has outperformed the broader market.
Schwanab has been a key investor in many companies, including Amazon.com Inc., Google Inc., Facebook Inc., Twitter Inc. and eBay Inc.
Schwatbs and his partners also bought the U.K. media company ITV in a $10 billion deal in 2016, and the Spanish media company La Vanguardia in 2014.