Twitter: Another Reason To Vote Down Deal
- Twitter reported a strong Q1'22 earnings report.
- The company has constantly grown users in the 15% to 20% range for years despite the opposite market view.
- The stock was not sold for a premium price and the deal being voted down could unlock more upside.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The one major concern with Twitter () suddenly accepting the Elon Musk deal was fears over weak results. The company actually reported solid Q1'22 numbers with the growth most market pundits suggestinvestment thesis
Update - May 16
Take the $1B from Musk and run a better company....pretty simple.
-With the odds of his $44 billion buyout of Twitter (NYSE:TWTR) dropping precipitously - at least as currently structured - Elon Musk says a viable deal is "not out of the question" at a lower price.
-Twitter stock (TWTR) fell 6.5% Monday, and has now given up all gains that emerged from the early-April revelation that Musk took a 9.2% stake in the company, a move that preceded his formal pursuit of a takeover.
-Monday, speaking at the 'All In' podcast summit, Musk challenged the truth and accuracy of Twitter's public filings and suggested if the deal were to proceed it would have to come at a lower price, Bloomberg notes. (Musk is committed to pay $54.20/share for Twitter, vs. Monday afternoon's stock price of $38.10.)