Can You Invest in BlueSky Stock and Is It Worth It?
Written by
John Csiszar
Edited by
Cory Dudak
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BlueSky is a social platform that has been gaining momentum since Elon Musk took over Twitter (now X) in 2022. Perhaps ironically, BlueSky was founded in 2019 by Jack Dempsey, the former CEO of Twitter. But while BlueSky mostly flew under the radar for the first few years of existence, it has made headline news in recent years, particularly in 2024.
Membership is skyrocketing at the nascent service, while its main competitor, X, has been hemorrhaging users. So, what is exactly going on in the social space to drive these changes, and is this the time to buy BlueSky stock? The answer to that question is a bit complicated. Read on to learn more.
How Fast Is BlueSky Growing?
Users have been flocking to BlueSky, particularly in 2024. In August, Brazil banned X, and BlueSky gained an estimated 3 million users as a result. After President Trump won the Nov. 2024 election and announced that X CEO Elon Musk would head the new Department of Government Efficiency, BlueSky picked up an additional 1 million users, many departing X in the process. This pushed the total number of BlueSky users to 15 million, according to The Guardian.
What Is Happening at X?
Ever since Elon Musk bought Twitter, took it private and renamed it X, users have been steadily fleeing the social platform. In 2023, X had approximately 250 million active daily users, but that number had fallen dramatically to just 157 million after the Nov. 2024 election. According to Sensor Tower, X has been losing roughly 14% of its users every month since its acquisition by Musk.
A main reason for the rapid decline in users has no doubt been the significant changes that Musk has introduced to the platform. Positioning the platform as a bastion of free speech, Musk eliminated most of the company’s content moderators and reinstated what Fortune magazine dubbed “openly white supremacist or otherwise vitriolic personalities.” The CEO also changed the company’s algorithm to favor both inflammatory posts and conservative talking points, often contributing or passing along his own conspiracy theories or other controversial statements.
Whether people have been leaving X due to their personal or political beliefs or simply because the platform has changed its successful model is open for debate, but ultimately it doesn’t really matter from an investment standpoint. What matters is where these users are going, and for many of them, the answer has become BlueSky.
Should You Buy Shares of BlueSky?
As BlueSky is rapidly gaining both followers and press coverage, it seems like it would be a good time to buy the company’s stock. Unfortunately, BlueSky is still a private company, meaning its shares are not accessible to everyday investors on the stock exchange.
If you’re an accredited investor, you may be able to access shares if the company ever has another funding round. To date, BlueSky has had three funding rounds, with the last raising $15 million on Oct. 24, 2024, according to PitchBook. However, to qualify as an accredited investor, you must either have an annual income of at least $200,000 ($300,000 if filing jointly), have a net worth excluding your primary residence of at least $1 million, or be a qualifying financial professional.
It’s important to note that even if you’re an accredited investor, BlueSky is still a very small private company that only has roughly one-tenth the active daily users as its main competitor, X. There are also plenty of other competing social platforms out there, including Meta Platforms’ Threads, created by Mark Zuckerberg. Although fundamentals appear to be working in BlueSky’s favor, the company should still be viewed as a speculative investment at this stage.
Extra Caveat: Beware BlueSky Digital Assets Corp. (BTCWF)
Shares in little-known BlueSky Digital Assets Corp. skyrocketed after the 2024 election (from roughly $0.04 to $0.60 — a fifteen-fold gain) as unwary investors piled into the company thinking it was Jack Dempsey’s X competitor, BlueSky. However, BlueSky Digital Assets Corp. is a completely unrelated company. If you’re looking to own the social platform, understand that it is a privately traded company and that you are not buying into it if you acquire shares of BTCWF. If you do, you’re likely to get burned as investors come to realize their mistake and dump the shares just as quickly as they buy them.
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