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Why is twitter stock price falling?

Posted on 4/26/22 at 9:06 pm
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1022 posts
Posted on 4/26/22 at 9:06 pm
Its a done deal isn't it?
$54.20 Guaranteed.
Why would someone sell at $50?
Posted by thelawnwranglers
Member since Sep 2007
38811 posts
Posted on 4/26/22 at 9:16 pm to
If deal falls through what is it worth?

Agreeing in principle still not done
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1022 posts
Posted on 4/26/22 at 9:29 pm to
quote:

If deal falls through what is it worth?

Agreeing in principle still not done



True but the whole stock market is one big casino.
This is the closest to guaranteed money you will ever get.
Posted by slackster
Houston
Member since Mar 2009
85101 posts
Posted on 4/26/22 at 10:08 pm to
quote:

This is the closest to guaranteed money you will ever get.


Nah. A 6-8% discount is pretty reasonable considering the circumstances, IMO. Opportunity cost is the biggest issue since the deal is still probably 6+ months away from closing. Also, your upside is capped and your downside, albeit unlikely, is -40% or more.

It’s similar to the TD Bank cash offer for First Horizon bank. FHN is at $22.80 but has a cash offer for $25 secured and awaiting regulatory approval.
Posted by Weagle25
THE Football State.
Member since Oct 2011
46199 posts
Posted on 4/26/22 at 11:05 pm to
quote:

Guaranteed

That’s where you’re wrong
Posted by TigerlandTiger
Member since May 2021
35 posts
Posted on 4/27/22 at 12:29 am to
So is TWTR a buy right now?
Posted by damnlambert
Louisiana
Member since Oct 2019
157 posts
Posted on 4/27/22 at 4:25 am to
It should trade at a discount. While upon close, shareholders would receive $54.20 per share, there is still risk. The deal could not go through for a variety of reasons,which would likely send the stock back to $35-40. Also time value. Deal expected to take possible 6 month to close.
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1022 posts
Posted on 4/27/22 at 5:38 am to
quote:

e value. Deal expected to take possible 6 month to close.


I think I read that the deal will close in June .
Posted by OTIS2
NoLA
Member since Jul 2008
50178 posts
Posted on 4/27/22 at 6:12 am to
If I owned Twitter, and I don’t (damn it), I’d be selling ASAP.
Posted by Diseasefreeforall
Member since Oct 2012
5557 posts
Posted on 4/27/22 at 6:20 am to
quote:

I think I read that the deal will close in June .


Twitter management told employees 3-6 months. The deal can be terminated if it doesn't close by Oct 24.

It will require a shareholder vote and while it seems extremely likely that shareholders will approve the buyout, there is the remote possibility that they won't. Elon has 9% voting power himself so he'll only need 42% in his favor plus he could be buying between now and when the deal closes to lower his purchase price.

Elon's Tesla shares are also reportedly already highly leveraged, with 51% being used as collateral for previous loans. If the TSLA price crashed, he could get margin called and be forced to sell some to cover his debt, which would make him have to sell more than he planned to buy Twitter and could scare off banks accepting his shares for collateral for the Twitter loans. How likely that is, who knows, but it is another risk.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22332 posts
Posted on 4/28/22 at 6:42 am to
Because everybody (current and future stockholders) has been fooled into thinking the "wokes"/anti-Elons have way more power and influence than the media would have you believe. The con game called "Revenge of the Wokes" is slowly unraveling. They are paper tigers.
Posted by Diseasefreeforall
Member since Oct 2012
5557 posts
Posted on 4/28/22 at 7:11 am to
quote:

Because everybody (current and future stockholders) has been fooled into thinking the "wokes"/anti-Elons have way more power and influence than the media would have you believe. The con game called "Revenge of the Wokes" is slowly unraveling. They are paper tigers.

It's not necessarily over even after Elon buys the company. If wokes start screaming about supposed inappropriate content on Twitter, it could easily drive big advertisers away, like it did on Youtube, and put pressure on the company to capitulate to some extent.
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