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 (NYSE:TWTR), the stock is at a crossroads. The deal offers 31% upside from here for shareholders holding out for the offer price, but Twitter likely faces considerable downside on a deal termination. My investment thesis continues to remain Bullish on the stock long term after a correction on the deal cancelation, if investors don't make a quick gain on a surprise close of the deal at the original terms.

Read the full article on Seeking Alpha. 

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. (NYSE:TWTR) is said to have hired law firm Wachtell, Lipton, Rosen & Katz LLP as it prepares to sue billionaire Tesla (TSLA) CEO Elon Musk over his termination of the $44 billion deal.
  • Twitter is targeting filing a lawsuit early this week, according to a Bloomberg report, which cited people familiar. Musk is using law firm Quinn Emanuel Urquhart & Sullivan LLP.
  • 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

Musk doesn't have a way out of this deal. 

  • Twitter (NYSE:TWTR) is sinking postmarket, down 5.6%, 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 figures on the prevalence of spam accounts can be verified.
  • Musk's team has stopped engaging in certain discussions around funding the deal, including with one likely backer, according to the report.


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