Market Spotlight: Twitter Higher Following Musk Takeover Confirmation
Shares in US social media company Twitter are trading around 5% higher pre-market today following news that the company has approved Elon Musk’s $44 billion takeover bid. Following news of the successful bid, Musk tweeted on the deal saying: “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”
Musk will now take the company private and, despite founder Jack Dorsey affirming his support for Musk and his belief in Musk’s goals, there is a great deal of uncertainty around the direction the company will now move in. Musk has argued against the content moderation many call for and has voiced his support for freedom of speech. However, many critics worry that Musk will lead the company down a dangerous path which see problematic content on the platform rise instead of fall. Additionally, amazon founder Jeff Bezos shared his concerns over the influence that China might now have on Twitter given the country’s importance to Musk’s primary business, Tesla.
Technical Views
Twitter shares are trading back up to 2022 high this week following the correction over early April which saw the company’s stock falling from around 52.86 to 44.03. Price is sitting within the upper portion of the longer term bear channel and, should earnings on Thursday come in above expectations, this might give Twitter shares the momentum they need to breakout.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.