It has been a troubled year so far for social media titan Twitter (TWTR). The company is in the middle of a theatrical lawsuit with Tesla CEO Elon Musk, who agreed to buy the social media company for $54.20 per share in April. The famed entrepreneur has since tried to withdraw from the deal over concerns that Twitter withheld important information regarding spam accounts. As of this writing, the stock trades at roughly $40 per share and is down about 10% year to date.
At the moment, the social media stock has a price-to-sales multiple of 6.1, which is near three-year lows. It seems as though the volatility in Twitter stock will continue until the Musk situation is resolved and macro headwinds sort out. I'd recommend hanging back and waiting for the digital advertising market to settle into growth again and for the legal battle with Musk to come to an end before deciding whether to buy shares. I don't think it's wise to buy a stake in Twitter until its long-term picture becomes clearer. There are far better investment options available in today's market.
Equitybee gives accredited investors access to hundreds of high-growth, VC-backed startups. By funding employee stock options, investors like you can own stakes in private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from successful liquidity events.
Elon Musk, together with his group of investors, owns 100% of Twitter stock. They bought it from the public market, so the $44 billion he paid went to the shareholders. Jack Dorsey, the founder, was an exception. He was allowed to retain his shares, which amount to 2.4% of the company.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.
Twitter (TWTR) stock has been on a roller-coaster ride ever since Elon Musk made a highly speculative bid to acquire the social media company. Now, as Musk seeks to renegotiate or pull out of the deal, is Twitter stock a buy
Twitter stock jumped 27% on April 4, after Musk revealed he had purchased a 9.2% stake in the company. Musk, the chief executive of Tesla (TSLA), then made it known he intended to acquire the company outright, offering $54.20 a share in cash for all outstanding shares. The deal valued the company at $44 billion.
Musk has since sought several ways to pull out of the deal. One of them was based on disagreements over how many Twitter accounts were spam or fakes. After Musk pulled his offer, Twitter stock dropped 7%.
According to the IBD Stock Checkup, Twitter has a weak IBD Composite Rating of 55 out of a highest-possible 99. When choosing growth stocks for the biggest potential gains based on the CAN SLIM investment paradigm, focus on those with a Composite Rating of 90 or higher.
Among other proprietary IBD ratings, Twitter has a Relative Strength Rating of 78. The rating means Twitter stock currently outperforms 78% of all stocks in the IBD database. That's over the past 12 months. Ideally, look for stocks with a rating of 80 or higher
Twitter stock is currently not a buy, and no discernible pattern has emerged to suggest a new buy point. However, the stock recently moved above its 200- day and 50-day moving average, both positive signals.
For more top stocks and stocks approaching buy points, check out these IBD Stock Lists, This includes Stocks Near Buy Zones. To see the current stock market trend, check out IBD's signature daily analysis, The Big Picture.
You'll also find alerts to warning signs and sell signals that show when to take your profits or cut short any losses. And, you'll discover if the current stock market trend is conducive to buying stocks, or if it's an environment where you want to take defensive action and sell.
The price trend came under pressure as investors questioned how the company could increase revenue from its millions of users, with further bearish sentiment coming from the broader sell-off in technology stocks so far in 2022.
TWTR stock price spiked from $38.69 a share at the end of March to $50.98 on 5 April after Musk bought his stake in the company. It dropped to $44.48 on 12 April but rallied again and reached $51.70 on 25 April, when Musk made his acquisition offer.
The share price ticked back above $40 at the end of May, but doubts about the deal continued. The stock dropped by more than 5% to close at $36.81 on 8 July, a response linked to news that Musk had officially terminated his plans to acquire the company.
The analysts pointed out that Musk bought into the company at a time when its stock was traded down by around 40% from the trailing 12-month period, at around five times its revenue estimate. At the time Truist had a Twitter stock price target of $50 a share.
The share price of Twitter, Inc. (TWTR) is little changed year-to-date, a far cry from its internet peers, who have mostly seen their stocks plummeting amid the Great Reset. Twitter shareholders have Elon Musk to thank as the enigmatic Technoking of Tesla, Inc. (TSLA) disclosed his approximately 9% stake in the social media platform in early April.
View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.
Get daily stock ideas from top-performing Wall Street analysts. Get short term trading ideas from the MarketBeat Idea Engine. View which stocks are hot on social media with MarketBeat's trending stocks report.
Identify stocks that meet your criteria using seven unique stock screeners. See what's happening in the market right now with MarketBeat's real-time news feed. Export data to Excel for your own analysis.
Musk began purchasing Twitter stock on January 31, 2022. On April 4, he announced that he had acquired 9.2 percent of the company's shares totalling $2.64 billion, making him the company's largest shareholder. Following the announcement, Twitter's stock experienced its largest intraday surge since the company's initial public offering (IPO) in 2013, rising by as much as 27 percent. The next day, Twitter invited Musk to join the company's board, which Musk accepted. This had been recommended to the board by Twitter's Nominating and Corporate Governance Committee three days earlier, with some board members expressing concern about potential \"adverse impacts on stockholder value\". The position would have prohibited Musk from going beyond a 14.9 percent ownership stake and limited his ability to speak publicly about the company. That day, Musk phoned Dorsey, who declined Musk's suggestion for him to remain on the board.
On April 11, after publishing several tweets critical of the company, Musk decided not to join the board. Instead, he informed Twitter that he intended to make an offer to take the company private. On April 12, Twitter's board met with lawyers and financial advisors to deliberate over the ramifications of such a deal as well as their options, while company shareholder Marc Bain Rasella sued Musk for allegedly manipulating the company's stock price and violating Securities and Exchange Commission (SEC) rules.
On April 14, Musk made an unsolicited and non-binding offer to Twitter to purchase the company for $43 billion, or $54.20 per share, and take it private. Though the offer was made to company management, the bid was described as a hostile takeover attempt because of the implied threat to purchase the outstanding stock if management declined. The board responded that it would \"carefully review the proposal\". In a TED interview, Musk said he aimed to make Twitter a \"platform for free speech around the globe\", hailing free speech a \"societal imperative for a functioning democracy\" and insisting that he had not made the offer to increase his wealth. Critics noted that he showed more interest in altering Twitter's moderation policies than in fighting government censorship. According to The Washington Post, the banning of accounts such as The Babylon Bee had prompted Musk to initiate the acquisition. The price of $54.20 per share is believed to be a reference to 420, a slang term in cannabis culture for marijuana consumption.
On April 15, Twitter's board of directors announced a \"poison pill\" strategy, which would allow shareholders to purchase additional stock in the event of a hostile takeover; the plan will expire on April 14, 2023. On April 17, Taylor was urged by Twitter's largest institutional shareholders to \"seriously consider\" the offer. On April 20, Musk disclosed that he had secured financing provided by a group of banks led by Morgan Stanley, Bank of America, Barclays, MUFG, Société Générale, Mizuho Bank, and BNP Paribas, for a potential tender offer to acquire the company. The funding included $7 billion of senior secured bank loans; $6 billion in subordinated debt; $6.25 billion in bank loans to Musk personally, secured by $62.5 billion of his Tesla stock; $20 billion in cash equity from Musk, to be provided by sales of Tesla stock and other assets; and $7.1 billion in equity from 19 independent investors.
On April 23, Musk informed Taylor that his offer was \"best and final\", urging him to accept in a letter sent the following day. Multiple outlets subsequently reported that Twitter was in final negotiations to accept Musk's offer, with a deal expected to be reached by the next day, though Reuters cautioned that the deal could still fall apart. On April 25, Twitter shares rose by 5 percent following reports that Twitter was poised to accept Musk's offer. Twitter advisors Goldman Sachs and JPMorg