Twitter: Musk buy-out is put on hold!!Twitter
Short Term - We look to Buy at 42.80 (stop at 38.55)
We have a Gap open from 41.00 to 44.00. We look for a temporary move lower. Support is located at 41.00 and should stem dips to this area. Further upside is expected although we prefer to buy into dips close to the 41.00 level. This stock has recently been in the news headlines for a buyout by Elon Musk.
Our profit targets will be 54.96 and 60.00
Resistance: 46.00 / 48.00 / 50.00
Support: 44.00 / 42.00 / 40.00
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Twitterstock
Elliott Wave Analysis On Twitter: Be Patient With Bulls Twitter.
Don't get too excited with "Elon Bulls" just yet.
New projects, and changes need time to develop, and lot of work is needed before ideas are put in action. It won't happen overnight.
Time (cycle) and price pattern analysis suggest a potential multi-year swing low for stock in 2023.
What you need to know to trade Twitter ahead of Thursday’s earniTwitter (NYSE:TWTR) is set to announce its first-quarter earnings results on Thursday and some analysts expect the microblogging platform to again incur losses on the back of its increased infrastructure and marketing spending amid tight competition.
Saturated market
The company, once among the most popular social media channels globally, has become old news particularly to young people with the emergence of platforms like TikTok and Snapchat (NYSE:SNAP).
Facebook (NASDAQ:FB) remains the market leader among social networking sites globally in 2022 in terms of the number of monthly active users, while Twitter has lagged far behind WhatsApp, Instagram, WeChat, TikTok, Snapchat, Telegram and Pinterest in terms of the number of users, according to data from Statista.
Stronger market competition over the past years has prompted Twitter to boost its spending on research and development, and sales and marketing over the recent years.
Losses mount
In 2021, Twitter’s R&D expenses ballooned 43% from 2020 to $1.25 billion, while sales and marketing costs surged 32% year on year to $1.18 billion. These pushed the company’s overall costs and expenses up 51% to $5.57 billion in 2021 and resulted in a net loss of $221 million for the whole year.
Still, the figure was down from a net loss of $1.14 billion in 2020 when the pandemic battered the company’s operations. For the first quarter of 2022, Twitter expects GAAP operating loss of between $225 million and $175 million, against an operating income of $52 million in the year-ago period.
Twitter also expects its quarterly revenue to range between $1.17 billion and $1.27 billion, up from $1.04 billion last year. Analysts expect the company to post a 22% jump in Q1 revenue to $1.57 billion, significantly up from the company’s targeted range. The analysts pegged Twitter’s earnings per share for Q1 at $0.33, down 13.2% from last year.
In the fourth quarter of 2021, although total ad engagements fell 12% year over year, Twitter still managed to rake in $1.41 billion in fourth-quarter ad revenue, up 22% from a year prior.
Musk’s $44 billion offer
Ahead of its earnings release on Thursday, Twitter became the subject of an acquisition offer from Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk. On Monday, the New York Times reported that Twitter is close to reaching a deal to sell itself to Musk after the latter launched an unsolicited go-private bid worth $54.20, or a total transaction value of ~$44 billion.
That figure represents a substantial premium from Twitter’s current $37 billion market value as of Friday.
Musk has made his plans for Twitter quite clear. Even before the billionaire built a 9.2% stake in the company for an estimated $2.9 billion, Musk has been vocal about how Twitter’s policies quash free speech. However, the Tesla CEO has been notorious in the past for making big market-moving stunts that lead to bigger regulatory concerns for companies that he control.
In his letter to Twitter’s board made public on Friday, Musk said "Twitter has extraordinary potential. I will unlock it.”
Twitter TWTR in Talks to Strike a Deal With Elon MuskElon Musk could finalize his acquisition of Twitter as soon as TODAY. Twitter shares TWTR popped 5% higher on the announcement.
The stock has been showing a bottoming consolidation in a rounding bottom to confirm a trend reversal by a close above $54.50 supply region.
In case of the deal's confirmation, TWTR may hit $65.00 - $70.00 easily.
TWTR poison pill "defence"If you haven`t sold TWTR here:
then what you should know:
After buying 9.2% of TWTR shares, Elon Musk wanted to buy Twitter (TWTR) for $43.4bn, $54.20 per share representing a 38% premium to the closing price on 1 April and take the company private.
Elon Musk about Twitter: “potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.”
“However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
"My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.”
TWTR is up only 8% after 8 years of being listed.
I don`t think Jack Dorsey has found the path to profitability, nor that the board works in the interest of the shareholders.
That`s why they went for the poison pill "defence".
I say "defence" as a joke, since the only one defended here are the board members and not the shareholders, which haven`t gained too much from holding the bag anyways.
The poison pill allows investors to buy additional shares of the company’s stock at a discount and therefore dilute the value of each individual share.
That is a viable strategy against an unwanted hostile takeover.
In my opinion, the board members will accept Elon`s proposal and buying the stock now will give you a 17% return.
Twitter - TWTR Technical Analysis - Hold For Now.Using a Weekly chart you can notice that prices have been moving horizontally, not a proper trend.
With a daily and 4h chart, a start of an uptrend (Bullish behaviour) might be found. Unfortunately, the bullish trendline can not be considered so it has been tested only 2 times.
Best option is to HOLD, as both up and down option are available.
This Market, is mainly influenced by Fundamental
Option 1 only if the resistance level of 50 USD will be broken
Option 2 - testing the amended trendline around 32 - 33 USD and if this level will not be broken it can be a signal of buying
Option 3 - Testing the possible trendline at 23.5 USD. If it will not be broken, it can be seen as buying signal.
What does Elon Musk want out of his Twitter stake?After being a staunch critic of Twitter for years, Elon Musk has acquired a 9.2% stake in the company for an estimated $2.9 billion in a deal that is widely seen as an attempt to shake things up at the social media platform.
Twitter’s stock surged 27% on April 4 following the ownership announcement.
Currently the world’s richest person with a net worth of over $270 billion, Musk became the platform’s largest shareholder and landed a seat on Twitter’s board of directors shortly after the ownership disclosure. The appointment would allow the Tesla and SpaceX chief executive officer to pitch ideas like adding an edit button to tweets and advocating free speech.
Free speech vision
Even before building his stake in Twitter, Musk has long criticized the platform for its restrictive policies. The self-proclaimed “free speech absolutist” in late March put out a controversial free speech poll asking his more than 80 million followers if they believe Twitter adheres to the principle of free speech as a key to “a functioning democracy.”
Musk also stressed the importance of the poll, urging his followers to vote carefully. Majority — or 70.4% — of Musk’s followers said “no” to the survey.
In a tweet two days after the poll, Musk said that “given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”
Weeks later, Twitter came out with an ownership filing disclosing Musk’s stake.
Musk now owns a bigger stake than Twitter founder Jack Dorsey, who still owns just over 2% of the company. Dorsey is known to be pro-censorship. Prior to Dorsey stepping down as CEO in November, Twitter moved to permanently suspend the Twitter account of former US President Donald Trump after the attack on the US Capitol Building on January 6 2021, with Dorsey saying it was “the right decision” for the company.
The question now lies on whether Musk will reinstate Trump’s Twitter account. But more than that, the acquisition will make Twitter’s stock more sensitive to tweets by Musk.
Market-moving tweets
Musk's excessive usage of Twitter triggered warnings, subpoenas and lawsuits by the US Securities and Exchange Commission in recent years. In 2018, he stepped aside as chairman of Tesla as part of a settlement with the SEC and agreed to pay a $20 million fine over past market-moving tweets that affected the carmaker’s stock price.
The billionaire’s tweets in mid-March about owning cryptocurrencies Bitcoin, Ethereum or Doge and having no intentions to sell his positions pushed up the market price of these digital tokens.
With his position in Twitter, Musk’s criticisms against the microblogging site will likely have an impact on its share price movement. His investment in Twitter provided a lifeline to the company as its shares have fallen to below $40 apiece in recent months.
Latest challenge for Twitter
After being targeted by activist shareholder Elliott Management for years, leading to Dorsey relinquishing his role as CEO, Twitter will now be up against Musk, who according to New York Times’ Opinion writer Kara Swisher, is an active investor.
"Elon Musk doesn’t take a 9.2% interest in a company like Twitter simply for passive income… he was never going to sit on the sidelines of the fight over Twitter,” Swisher said in an opinion piece on Thursday.
In a sign of his plan to take on a more active role on Twitter’s board, Musk filed a more detailed Schedule 13D filing with the SEC three days after submitting a Schedule 13G, which is intended for investors that do not plan to engage with the company’s management. A 13D filing makes passive investors transition into activist status.
Musk’s exact plans for Twitter remain uncertain, but Twitter’s stock will surely be one to watch in the coming days. Over the past 24 hours, Musk put out more polls including asking his followers whether or not to “convert Twitter SF HQ to homeless shelter since no one shows up anyway.”
The Tesla CEO also wants Twitter to remove advertising for subscribers of its Twitter Blue paid subscription service, he said in a tweet on Saturday. The plan is expected to be met with opposition from Twitter’s board as 89.8% of Twitter’s revenue in the fourth quarter of 2021 was from advertising.
4/10/22 TWTRTwitter Inc ( NYSE:TWTR )
Sector: Technology Services (Internet Software/Services)
Market Capitalization: 37.014B
Current Price: $46.23
Breakout price: $48.40
Buy Zone (Top/Bottom Range): $45.85-$39.90
Price Target: $55.50-$56.00 (1st), $68.20-$70.20 (2nd)
Estimated Duration to Target: 62-66d (1st), $160-166d (2nd)
Contract of Interest: $TWTR 6/17/22 3.30c, $TWTR 9/16/22 50c
Trade price as of publish date: $4.75/contract, $5.15/contract
TWTR Elon Musk just took a 9.2% stake in TwitterIf you haven`t sold TWTR at $65.50:
then you should know that Elon Musk just took a 9.2% stake in Twitter valued at close to $3 billion as of Twitter's closing price on Friday.
With 80.2Mil followers, Musk has the 7h most-followed Twitter account.
That being said, Twitter remains an unprofitable business since its launch.
Strong resistances at $48 and $54.50.
Looking forward to read your opinion about it.
Twitter to Move Lower? Twitter - Short Term - We look to Sell at 38.01 (stop at 39.89)
We look to sell rallies. Our overall sentiment remains bearish looking for lower levels. A Doji style candle has been posted from the high. Previous resistance located at 39.00.
Our profit targets will be 32.49 and 29.88
Resistance: 39.00 / 45.00 / 50.00
Support: 32.00 / 30.00 / 25.00
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TWITTER (TWTR) | Possible Rejection Area!Hi,
Just an idea to look for the fundamentals of Twitter. Technical analysis suggests that TWTR can see a short-term rejection from the shown area.
Criteria:
1. Strong areas around the current price
2. The trendline (not the best one but still there)
3. Channel projection
Do your own analysis and be cautious!
Regards,
Vaido
Twitter TA, TWTRPrimarily Twitter is the platform that hosts many of the conversations regarding NFT's and new digital assets
I find this very bullish for Twitter, an influx of new users (including my self) will reflect well on the stock price
Over time I will enjoy seeing if Twitter remains the dominate space for communication about NFT's or migration occurs to another platform
Regarding the TA, I see price recovering along the dotted line, coinciding with a bounce within 2.618 of the downtrend circle drawn
Short term bear, long term I see twitter increasing dramatically from its current price
I have posted in the past about NFT's and Twitter.
TWTR Was the Twitter sell-off predictable ??If you considered this short call signal at $65, then yes:
Twitter is now close to its 2013 IPO price $26 per share. Just that the stock debuted on the NYSE at $45.10 a share.
So you can buy it lower now.
I would think twice, though:
The company is not profitable and its co-founder, Jack Dorsey, has stepped aside as the company's CEO.
Twitter can also lose market share because of TRUTH Social!
My price target is $30.5.
Looking forward to read your opinion about it!