Twitter: At A Crossroads
- Musk continues to file complaints regarding the Twitter spam account issue causing fears the deal won't close at the agreed upon price.
- The company continues to fight back on the bot issue with the data suggesting the parties are talking about different issues.
- The stock has immediate 30% upside on the unlikely close of the deal, or a larger user base to support higher stock prices when the economy improves.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
As Elon Musk continues to complain about the bots on Twitter (), the stock is at a crossroads. The deal offers 31% upside from here for shareholders holding out for the offer price, but Twitter likely facesinvestment thesis
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Disclosure: Long TWTR. Please review the disclaimer page for more details.
Update - July 10
Should be a wild week. Where does $TWTR close on Monday with the meager canceled and a lawsuit? Twitter closed at $35 in after-hours, but the stock will likely trade lower on Monday. Dips should be bought either way.
- Twitter Inc. (TSLA) CEO Elon Musk over his termination of the $44 billion deal. ) is said to have hired law firm Wachtell, Lipton, Rosen & Katz LLP as it prepares to sue billionaire Tesla (
- The news comes as Musk said late Friday he's terminating his $44B deal to purchase the social media giant. An SEC filing from Musk's advisers says that on Friday, they sent a letter to Twitter giving formal notification that he's terminating the merger agreement.
Update - July 7
- Twitter () is sinking postmarket, , alongside a Washington Post report that billionaire Elon Musk's $44B deal to acquire the company is in "serious jeopardy."
- That's blamed on skepticism on Musk's side that Twitter's
- Musk's team has stopped engaging in certain discussions around funding the deal, including with one likely backer, according to the report.