Twitter (NYSE: TWTR) stock is trading lower in US premarket price action today after reports suggested that Elon Musk’s deal to buy the microblogging site is in jeopardy. Earlier this year, Musk took a 9.2% stake in Twitter to become its largest individual stockholder.

By virtue of his ownership Musk was expected to get a seat on Twitter’s board. However, he turned down the offer which led to speculations that he is looking to acquire the company. Musk soon made an offer to buy Twitter for $54.20 per share valuing the social media company at $44 billion.

In his SEC filing, Musk said, “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.” He added, “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

Musk’s offer was at s significant premium to Twitter’s stock price. While the board initially rejected the offer and introduced a poison pill to block the offer, it eventually agreed considering the massive premium that Musk offered for the company.

However, over the last two months, Musk and Twitter have been sparring over the number of fake accounts on the social media platform. Twitter maintains that only about 5% of its accounts are fake, and it removes millions of fake accounts every month. However, Musk believes that the number of fake accounts is much higher and has been seeking more information from the company pending which he kept the deal on hold.

Twitter Stock Crashes on Reports that Musk’s offer is in jeopardy

Meanwhile, now reports suggest that Musk’s offer is in jeopardy. Twitter stock is crashing as the stock had soared on expectations that Musk would acquire the company. However, given the uncertainty about the acquisition, Twitter stock was anyways trading at a discount to Musk’s offer price. Usually, the stocks of acquisition targets trade near the acquisition price. However, the discount suggested that markets believed that the offer would not go through.

Notably, the drama over Musk buying Twitter had also been weighing on Tesla stock. Musk is already running multiple companies and even some analysts otherwise bullish on Tesla stock believed that Musk acquiring Twitter would be a distraction for the world’s richest person.

Tesla stock has anyways been under pressure amid the sell-off in growth names. Virgin Galactic stock has also crashed this year. However, it soured yesterday after it announced a deal with one of Boeing’s subsidiaries. Chip stocks have also crashed amid concerns over slowing gadget sales. Samsung’s guidance helped trigger the rally in chip stocks yesterday as the company forecast better than expected sales in the second quarter.

As for Tesla, the company is anyways battling multiple issues including the issues at its Berlin and Austin plants. It also lost the title of the world’s largest electric car company to BYD Motors after the production issues in China.

Tesla Stock Has Fallen but Some Analysts See it as a Buy

While Tesla stock has fallen this year some analysts see the fall as a buying opportunity. Deutsche Bank believes that the stock is headed to $1,100 in the second half of the year and reiterated Tesla stock as a buy. However, Wall Street continues to be as divided as ever on Tesla stock and JPMorgan, which has been bearish on the stock, believes that it would fall further in the back half of the year.

Coming back to Twitter, the stock is trading 4% lower in US premarket price action today even as futures point to a flat opening for broader markets. Tesla stock was trading almost flat in pre-market.

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