Twitter: No Code Red Here

 

  • Twitter falls 7% after Elon Musk announces plans to terminate the acquisition of the social media company for $54.20.
  • The company appears to have a rock-solid contract to force Mr. Musk to complete the deal or settle for a sum in excess of the $1 billion breakup fee.
  • Based on a per mDAU value, Twitter has already lost 60% of their value since the covid peak last year.
  • The stock has immediate 60% upside on the unlikely close of the deal, or a larger user base to support higher stock prices when the economy improves.
Elon Musk attempting to terminate the Twitter (NYSE:TWTR) merger is no surprise. The unknown has always been any outcome of an attempt by the social media company to sue Musk. Either way, Twitter doesn't face a 'code red' event as suggested by a prominent analyst. My investment thesis remains ultra-bullish on the stock following a likely dip, as traders exit a position with a hoped for outcome of $54.20 per share.

Read the full article on Seeking Alpha. 

Disclosure: Long TWTR. Please review the disclaimer page for more details. 

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