Elon Musk changed his mind about Twitter deal

11 july 2022 52
Ivan__Titov
Ivan__Titov

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3rd in the segment "Indices"
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Since Elon Musk announced his plans to buy Twitter for $54.2 a share in early April, the stock prices have not risen to this level anymore. Market participants set the stock price taking into account a high risk of deal failure, and, as a result, it materialized.

 

On Friday, Elon Musk representatives reported that the founder of Tesla would not acquire the social network. The reason is a large number of bots, significantly exceeding 5% reported by Twitter. Obviously, this is not the end of the Twitter deal as the litigation is coming, but the market is always ahead of the curve.

 

Shares of Twitter fell 4.6% during the main session on Friday and another 5% during post-market trading, reaching the level of 35. The Shooting star was formed on the chart and Stochastic gave a sell signal. Now the way to the annual minimum of 31.17 for Twitter is clear.

 

However, it cannot be ruled out that the deal will eventually be completed and Elon Musk is just trying to negotiate a reduced buyout price for $ 54.2 a share. In any case, the volatility of Twitter shares will clearly be interesting for speculators.

Ivan__Titov
Ivan__Titov

Listed among the best MarketCheese authors
3rd in the segment "Indices"
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